The sharp decline in S&P 500 from its February 2020 high can be seen as an incomplete five-wave Elliot Wave impulse structure.
In order to complete the impulse structure,
What's your thought on S&P 500? Do you think it has find the bottom?
- The price breakout of the short-term trendline in wave (i), followed by a sharp corrective pullback in wave (ii) that retested the broken trendline.
- A sharp sell-off followed the retest and extends to 1.618 x wave (i), a common termination point for wave (iii) which is usually the longest wave among wave (i), (ii) and (v).
- Wave (iii) decline breaks a mid-term ascending trendline and weekly S/R level.
In order to complete the impulse structure,
- A corrective rally should take place in wave (iv), which would most likely retest the mid-term trendline that lined up with supply zone, and 38.2 Fibonacci ratio
- Once wave correction is completed, we should see a last downward move to complete the five-wave impulse pattern.
What's your thought on S&P 500? Do you think it has find the bottom?