S&P 500 Elliott Wave: Searching For Equilibrium…

There is a longer pattern going back to 2009 that can be counted as complete too. If indeed that 2009-2025 impulse pattern is completed, then deeper cuts are possible down to 2,600-3,500 (see yellow box on the image above).

This price zone is guarded by the wave (4) low and the 38.2% Fibonacci retracement level. Of course, if the rally from 2009 is complete, then even lower levels below 2,600 are possible. However, for now, one step at a time.

Bottom Line

SP500 appears to be in wave ((iii)) or wave ((c)) of a decline. This decline appears incomplete and could reach 4,300 in the coming days.

There is a larger pattern that can be counted as complete, too. If the rally from 2009 is over, then a deeper cut to 2,600 – 3,500 is considered ‘normal’.

If SP500 rallies above 5,488 to overlap the March 31 low, then we’ll consider a medium-term low is in place.

Short-Term Bias: Bearish

Long-Term Bias: Bearish

Key Level for Bearish Bias: 5,488 (March 31 low)

Initial Target: 4,300

Secondary Target: 2,600 – 3,500