Wave 4 yet to complete - potential move to 2700
Hello traders,
Today we are looking at the SP500.
It appears as though we are in the middle of wave 4 (ABC) structure which is currently forming.
Generally speaking wave 4 may re-test the top of wave 1(2600-2700), meaning we could be setting up for another leg lower before a 5 wave rally to finish wave 5.
Once Wave 5 has finished we may see a sizable drop lower potentially continuing a bear market.
Rules of Elliott Wave theory:
Wave 3 ends around the 1.61% FIB extension, this ticks the box.
Each of the fourth waves on a smaller degree also re-test the top of the first wave structure.
Wave 4b could be a running flat ending around the top of wave 3 (2950)
I will be looking to add short positions at 2950 which will also be a double top with stop losses at 3050.
Take profit targets will be around the 2700 level.
Any thoughts on this set up please let me know!
Today we are looking at the SP500.
It appears as though we are in the middle of wave 4 (ABC) structure which is currently forming.
Generally speaking wave 4 may re-test the top of wave 1(2600-2700), meaning we could be setting up for another leg lower before a 5 wave rally to finish wave 5.
Once Wave 5 has finished we may see a sizable drop lower potentially continuing a bear market.
Rules of Elliott Wave theory:
Wave 3 ends around the 1.61% FIB extension, this ticks the box.
Each of the fourth waves on a smaller degree also re-test the top of the first wave structure.
Wave 4b could be a running flat ending around the top of wave 3 (2950)
I will be looking to add short positions at 2950 which will also be a double top with stop losses at 3050.
Take profit targets will be around the 2700 level.
Any thoughts on this set up please let me know!