SP500 – Approaches Upside Targets!
by WaveTrack International| October 30, 2019 | 22 Comments
SP500 – Leading/Expanding-Diagonal Approaches Upside Targets!
What do U.S. and European stock markets have in common? Well, the list is extensive. However, from an Elliott Wave perspective, the most pertinent answer to this question is that both have evolved higher from their August lows into five wave impulse patterns. And even more important, they are completing just ahead of today’s Federal Reserve FOMC interest rate announcement – coincidence?
Nah, don’t believe in coincidences, especially when pattern alignments like this occur.
Yet, European indices have pulled higher from their August lows developing into five wave ‘expanding-impulse’ patterns whilst the benchmark SP500 index (futures) has developed into a five wave ‘diagonal-impulse’ pattern. The distinction between these two types of ‘impulse’ patterns is that one has a typical ‘extended’ wave, either 1-3-5. Whilst the other does not whilst exhibiting ‘overlapping’ sequences in waves 1-4. Tutorial over!
October 2nd ‘s report identified the SP500’s diagonal during its 4th wave correction – see fig #1. This is a leading/expanding-diagonal which is very difficult to identify. Unless you know the internal structure of the pattern and its relative proportional dimensions. The 4th wave was forecast ending
towards 2891.00+/- then turning higher to complete a 5th wave towards 3063.00+/-.
SP500 Fast-Forward
We can see how the 4th wave completed down to a momentary price-spike of 2855.00 but then turning higher to begin the 5th wave advance – see fig #2. Upside targets are being approached right now and could even have completed already into last night’s high of 3046.25.
SP500 – Conclusion
The approach to upside targets to complete the diagonal and the relative five wave uptrends in European indices can’t be a coincidence heading into today’s Federal Reserve FOMC interest rate announcement. However, it’s possible that once the rate decision hits the screens, the SP500 pops higher to 3063.00+/- but then declines afterwards. Buy the news, sell the fact! Either way, there’s a heightened risk of a reversal-signature today.
Find out what WaveTrack’s latest SP500 forecasts are and subscribe to the Elliott Wave Compass report.
The ELLIOTT WAVE COMPASS report focuses on the shorter-term perspective of price development comprising of two online updates per week describing and illustrating a cross-section of market trends/counter-trends for stock indices, bonds, currencies and commodities from around the world. This report is ideal for professional and private clients trading a time horizon of a just a few days to a few weeks ahead.
The bi-weekly EW-Compass report offer short-term perspective for global markets
· Stock Indices
· Bonds
· Currencies (FX)
· Commodities
If you like to know more details about the Elliott Wave Compass report and what contracts are covered please For more details, please click here