SPX going down? Elliott Wave theory

    Posted by demarktrader on 1st of Mar 2013 at 12:06 pm

    See attached comments... I think the rally was a three wave move and we will break down from here.

    EW Comments

    Posted by steve on 1st of Mar 2013 at 12:21 pm

    I don't count five clean waves down on ES or SPX Cash off yesterday's highs.  The move up could be view as an Leading Diagonal (or nested 1-2). Earlier I posted a potential IHS pattern to monitor. 

    With that said, I will respect the market's intentions. I trade off my signals and use EW for mapping. Clearly, things are somewhat sketchy here with certain relationships sending warning signals. For example, the dollar strength and weakness in copper are two along with the lagging small caps. I believe this will ultimately (if not sooner) lead to a deeper downside move this spring even if the market manages to grind higher from here (in a potential HS topping pattern I've shown on daily charts).

    In summary, keep an open mind and respect your triggers in accordance with the time frame you trade.

    On the S&P500 15min chart

    Posted by rixx on 1st of Mar 2013 at 12:15 pm

    On the S&P500 15min chart I'm only seeing 3 waves down. Both futures and cash.

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