WaveTrack International

Elliott Wave Financial Price Forecasting

SP500 – CORRECTION DUE!

by WaveTrack International| May 10, 2018 | 4 Comments

SP500 – 5 Wave Expanding-Impulse Pattern Ending Now – Correction Due!

  • SP500 is in the process of ending a short-term five wave uptrend that began from the early-may low of 2591.25 towards 2708.75+/-. A corrective downswing is measured towards 2649.50+/-
  • Tuesday’s update in our latest report stated ‘…The current intra-hourly advance from the early-May low of 2594.62 (2591.25 futures)…is developing into a five wave expanding-impulse pattern – upside targets are measured towards the 2708.00-18.00+/- area. Upon completion, this ends wave < a > within a developing zig zag pattern…’.

    That five wave pattern can be seen approaching upside completion now – see fig #1. Labelled 1-2-3-4-5, note that wave 5’s upside targets at 2708.75+/- are derived where this fifth wave unfolds by a fib. 61.8% ratio of waves 1-3.

    SP500 Index - Futures - 30 mins. - by WaveTrack International

    SP500 Index – Futures – 30 mins. – by WaveTrack International

    A counter-trend decline is perfect timing to begin wave < b > within this developing, larger uptrend. Idealised retracement levels are towards the fib. 50% retracement area at 2649.50+/-.

    Conclusion

    Current forecasts are ticking all the right boxes with pattern development following the precepts of the Elliott Wave Principle. What does this tell us? – it tells us that once a short-term correction has ended, the SP500 along with the other major U.S. indices will trend higher again. A re-test and even a slight break above the February highs seem inevitable.

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    Comments

    • ubique stultorum

      Curious if the break to 2732 is safe to
      assume that the 50% retrace level would be raised to the 2696 level?

      • Dear Stultorum, Thank you for your comment. The SP underwent a 5th wave extension which pushed the index to an even higher-high ending at 2741.25
        – see our latest post – yes, that means measuring the retracement from the 2741.25 high – fib. 38.2% = 2683.00+/- and 50% ret. = 2665.00+/-.
        To explain further we will try to post another Social Media update today. Best wishes

        • ubique stultorum

          Thanks for the reply! Great stuff! Is there any possibility that it only retraces to the 23.6% level… ? Thanks in advance… Collin G

          • Good question! A fib. 23.6% retracement is possible. However, over the years of studying Fibnacci-Price-Ratios we found that in terms of probability it is ‘unlikely’ – only 7-10% per cent corrections end as a fib. 23.6% retracement. More often when they do, they represent the first sequence, i.e. wave ‘a’ within an expanding flat correction. The second sequence, wave ‘b’ trades to a new higher-high (or lower-low) followed by the third sequence as wave ‘c’ which tests the deeper fib. 38.2% retracement level. Best wishes.

    About WTI

    WaveTrack International is a financial price forecasting company dedicated to the Elliott Wave principle and work of the R.N. Elliott. Clients include Investment Banks, Pension Funds, Total/Absolute-Return/Hedge Funds, Sovereign Wealth Funds, Corporate and Market-Making/Trading institutions and informed individuals -- & just about anyone who is affected by directional price change.

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