S&P500 Can Face a Bearish Reversal and CADJPY More Upside


S&P500 shows a five wave move within wave 5) since mid of November which means that sooner or later, a deeper and new corrective set-back may occur. Particularly we see price picking up, away from the lower channel line, which indicates final sub-wave five of 5 to be in progress, which can search for a top near the 2700/2710 region. A later break below the channel line would suggest a locked in a top and a three-wave bearish reversal to be in progress.

S&P500, 4h

Now let’s look at CADJPY.

We see CADJPY at the end of a wave 4) pullback that belongs to an ongoing five wave recovery in wave C. Ideally a new leg up will resume after recent turn up from around 86.76 area and the upper base channel line. Wave 5) of C can in weeks ahead lift prices up, to around the 93.60 region, where Fibonacci projection can project end of blue wave C.


Thank you and have a nice holiday traders!



Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All our work is for educational purposes only.

Get the 5 most predictable currency pairs

About Author

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!

Comments are closed.