A sharp impulsive reversal from the highs suggests that the S&P500 has reached a temporary top and that price is heading lower or sideways in wave 4. Wave 4 is a corrective leg so this can be only a temporary weakness but we still need three legs in (a)-(b)-(c) formation, before we may start looking back to the highs again. Based on the latest price action we see a completed wave (a), followed by wave (b) that may find resistance next week around 1800/20.

S&P500 Daily Elliott Wave Analysis

S&P500 Daily Elliott Wave Analysis Chart

S&P500 Four Hour

S&P500 reversed nicely from the lows, clearly in five waves from 1732 which suggests that decline from the highs is completed, either as a five wave move in wave (a) or a zigzag labeled as alternate count. In both cases we need a minimum three waves to the upside. We see now wave a) at resistance of a former wave four, so traders should be aware of a pullback in the next few sessions, ideally back to 1750/62 zone before prices may continue up in wave c).

S&P500 4h Elliott Wave Analysis

S&P500 4-Hour Elliott Wave Analysis Chart

S&P500 One Hour

The EUR rallied, USD fell at the end of last week after ECB press conference and worse than expected NFP figures. Meanwhile the US stocks and commodities rallied as bonds declined.

On S&P500 futures chart we can count five waves up from the lows, which is important structure for a bullish case. We are expecting minimum three waves up from the lows in this week, but before uptrend will resume we need a corrective wave b) move down to 1750/62 region where traders could be interested in long opportunities.

S&P500 1h Elliott Wave Analysis

S&P500 1-Hour Elliott Wave Analysis Chart

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Ew-forecast.com is providing advanced technical analysis for the financial markets (Forex, Gold, Oil & S&P) with method called Elliott Wave Principle. We help traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our view and bias as simple as possible with educational goal, because knowledge itself is power.

Gregor is based in Slovenia and has been in Forex market since 2003. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets; from candlestick patterns, MA, technical indicators etc. His specialty however is Elliott Wave Theory which could be very helpful to traders.
He was working for Capital Forex Group and TheLFB.com. His featured articles have been published in: Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu. He mostly focuses on currencies, gold, oil, and some major US indices.

© 2014 Copyright Gregor Horvat - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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