Elliott Wave Analysis of the S&P-500 (SPX) by Sid from ElliottWavePredictions.com. Click on the chart twice to enlarge.

So far, the expanding ending diagonal for wave 5 pink ending in truncation count shown in the last post is following though nicely.

The chart above shows what I believe is a better way to count the entire corrective movement since what I think was the end of cycle wave 1 on July 7 of last year. By accepting that the pattern from August 31 2011 through October 4 2011 was an expanding ending diagonal, and drawing a fibonacci from the July 7 2011 high to the October 4 2011 low, the common extension target for wave B Burgundy (if cycle wave 2 is carving out an expanded or running flat) is where B would be 1.382 times what wave A was at 1464.09. Thus far, the SPX has not been able to sustain any kind of push above that level. As a matter of fact, when looking at a daily chart, 1464 appears to be a very strong and successful line of resistance. Notice also that the SPX stopped less than 2 points shy of reaching another fibonacci target @ 1476.38, where wave Y black would equal wave W black times .618.

If the top for Primary (burgundy) wave B is finally “in”, Wave C burgundy will reach 1.618 times the length wave A was at 1016, which is also the 50% retracement of cycle (teal) wave 1. If that eventuality materializes, a suitable length and duration cycle-degree wave 2 would result. Refer to my August 4, 2011 DJIA post , which was the first time I depicted the March 2009 though Summer 2011 bull as a completed impulse, and showed a potential path for a subsequent “zigzag” for cycle (teal) wave 2. Now, 14 months later, it appears most likely that the market has given us a less common “flat” for wave 2 (teal), sporting a double zigzag for the burgundy wave B within.