Further rally in the cash S&P500 on Wednesday has pushed the wave iv’ scenario as far as it can go. We can’t exceed 804.30 under this scenario, which is just under the next Fibonacci cluster (805-809). Any break of 804.30 and the alternate wave count discussed yesterday becomes the new roadmap. Elliott is the roadmap used to map how we get from one point to another. The destination right now (next Level 5 PRP) is one more new low (below 666) before a potentially large multi-month rally can unfold in equities.
Note that the high on 3/16 and low on 3/17 have now been marked as Level 1 Price Reaction Points. The Elliott Wave from the 3/6 low can not be deemed complete until either the Level 1 PRPs show a trend change or a CIT is reached.
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