Elliott Wave Analysis: S&P500 Can Take A Corrective Dip

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Good day traders! Today we are going to take a better look at S&P500.

S&P500 is trading bullish since November 2016, when wave II was completed. From there the price continued strongly higher into wave III which can be in its late stages with the current expanding diagonal in sub-wave five which may reachits top at 2500/30 area. Afterwards a three-wave correction into wave IV can follow.

S&P500, Daily

Regarding the 4h chart, we see E-mini S&P500 trading in a complex upward move within wave five, the final leg of an expanding diagonal as shown on a daily chart. We can see that the price made a new sharp reaction higher overnight, which is now a confirmation that the minor wave c of Y is in progress. Ideally, the current rally will search for a top near the 2500 region.

S&P500, 4H

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About Author

Grega Horvat
Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of www.ew-forecast.com, 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 www.ew-forecast.com 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.
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