Long - Term S&P 500 - Elliott Wave Count -05/17/24
The SPX appears to be in the mid phase of an Elliott wave Expanding Flat.
If a peak is made it will be labeled as Primary wave “B”. The next move could be a multi-month drop to at least the October 2022 bottom.
A Common Fibonacci relationship between wave “B” and wave “A” in an Expanding Flat is wave “B” 1.382 the size of wave “A”.
The January 2022 to October 2022 decline – Primary wave “A” was 1,327.04 points.
1,327.04 x 1.382 = 1,833.97 added to the October 2022 bottom of 3491.58 targets SPX 5,325.55.
The SPX high on 05/16/24 was 5,325.49.
The weekly RSI has a significant bearish divergence vs. the March 2024 peak. Please note this is similar to what happened at the January 2022 peak.
The SPX could be on the verge of a multi- month decline.
If a peak is made it will be labeled as Primary wave “B”. The next move could be a multi-month drop to at least the October 2022 bottom.
A Common Fibonacci relationship between wave “B” and wave “A” in an Expanding Flat is wave “B” 1.382 the size of wave “A”.
The January 2022 to October 2022 decline – Primary wave “A” was 1,327.04 points.
1,327.04 x 1.382 = 1,833.97 added to the October 2022 bottom of 3491.58 targets SPX 5,325.55.
The SPX high on 05/16/24 was 5,325.49.
The weekly RSI has a significant bearish divergence vs. the March 2024 peak. Please note this is similar to what happened at the January 2022 peak.
The SPX could be on the verge of a multi- month decline.
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