Elliott Wave Analysis: SPX Bounce Expected to Fail

SPX has broken below Oct 30 low (2603.54), i.e. Black wave ((W)), opening further downside with incomplete bearish sequence from Sept 21 high (2940.91). Near term Elliott Wave view suggests the decline to 2603.54 on Oct 30 low ended black wave ((W)). Bounce to 2815.6 ended black wave ((X)) as a zigzag Elliott Wave structure. Up from 2603.54, blue wave (A) ended at 2756.55, blue wave (B) pullback ended at 2700.44, and wave (C) of ((X)) ended at 2815.62.

SPX has since declined from there and broken below black wave ((W)) at 2603.54, confirming the next leg lower has started. black wave ((Y)) is unfolding as a zigzag Elliott Wave structure where blue wave (A) ended at 2583.23. Internal of blue wave (A) unfolded as a diagonal where red wave 1 ended at 2631.09 and red wave 2 ended at 2800.18. Red wave 3 ended at 2621.53, red wave 4 ended at 2708.54, and red wave 5 of (A) ended at 2583.23. Blue wave (B) is currently in progress to correct cycle from Nov 8 high (2815.62) in 3, 7, or 11 swing before the decline resumes. Currently it is targeting the equal legs of red A-B towards 2714.8-2772.14 area where it can end blue wave (B) and also which is the area where we like selling it at as far as pivot at 2815.62 stays intact. Right side is to the downside against 2815.62 peak.