SPX500 Primary Degree Impulse Tests New Highs
We continue to analyze the situation on the SPX500 index from the point of view of Elliott theory. A large impulse trend is being formed, consisting of sub-waves I-II-III-IV-V of the cycle degree.
The first three parts of the impulse pattern have ended. There is a possibility that the cycle correction wave IV has also come to an end. This looks like a triple zigzag of the primary degree Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ.
Thus, shortly, prices could start moving above 4326.34 in the final cycle wave V. This will take the form of a primary degree impulse, as shown on the chart.
An alternative scenario shows that the actionary wave Ⓩ will strive for equality with the wave Ⓨ.
Prices could drop in the SPX500 to 3339.24. At that level, sub-waves Ⓩ and Ⓨ will be equal. Only after reaching the specified level, the price could turn around and start an upward movement. A bearish impulse wave (C) of the intermediate degree is required to complete the wave Ⓩ.
An approximate scheme of possible future movement is shown by trend lines on the chart.
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