We continue to analyze the situation on the SPX500 from the point of view of Elliott theory. It is assumed that the index forms a large impulse trend, which is marked by five sub-waves of the cycle degree I-II-III-IV-V.
Perhaps the first three parts of the impulse pattern are fully completed, and there is also a possibility that the cycle correction wave IV has also come to an end. It looks like a triple zigzag of the primary degree Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ.
Thus, in the near future, the price may start moving up towards a maximum of 4326.34 within the final cycle wave V, which may take the form of an impulse or an ending diagonal.
It is likely that the actionary wave Ⓩ will strive for equality with the wave Ⓨ. In this case, it is worth considering the second scenario.
Market participants may expect a drop in SPX500 to the price mark of 3332.12. At that level, sub-waves Ⓩ and Ⓨ will be equal to each other. Only after reaching the specified level, the price may turn around and start an upward movement.
An approximate scheme of possible future movement is shown by trend lines on the chart.
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