Elliott Wave Analysis of the S&P-500 (SPX) by Sid from ElliottWavePredictions.com

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

The move down from last Thursday’s high of 1333.47 was clearly in 3 waves, which leaves the S&P with the following two wave counts, if my longer term count of a black WXY to complete wave B Burgundy is correct. The main count depicted on the chart above shows that wave 5 pink is unfolding as an expanding ending diagonal, in which case the S&P must rally to a minimum of 1343.11 before wave B burgundy is complete. Movement below 1300.49 would reduce the likelyhood of this scenario, and movement below 1290.88 would invalidate it. I’m ranking this the main count because it is more in agreement with the long standing trend, which is up.

The alternate scenario is that Thursdays high of 1333.47 will hold, and that a new down trend has started with a leading diagonal. This scenario is outlined on the chart with light grey lines. Movement above Thursday’s high of 1333.47 would invalidate, and below 1290.88 would initially confirm.

In the short term, both of these wave counts call for upward movement to back above this morning’s high of 1321.41.