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Elliott Wave Analysis S&P500 and Crude OIL January 18


S&P500 is falling sharply since the start of the year, making the big corrective wave four much more complex than at first sight, but despite strong weakness we see the decline from 2074 as part of a temporary weakness. We are looking at wave C or wave 3, where both can be near completion, so we need to be aware of a turn up, into a minimum three wave of recovery. Ideally the price will bounce from a new low, at around 1830 where S&P500 may complete an ending diagonal in wave 5).

S&P500, 4H

snp 4

An ending diagonal is a special type of pattern that occurs at times when the preceding move has gone too far or too fast. A small percentage of ending diagonals appear in the C wave position of A-B- C formations. In all cases, they are found at the termination points of larger patterns, indicating exhaustion of the larger movement.

An Ending Diagonal Pattern:

ending diagonal (1)

Gregor Horvat

Gregor Horvat

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At Ew-forecast he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!