The latest weekly cash S&P500 price bar is uptrending with a lower close – a “Reversal” bar. This reversal came right at the 1.5 standard deviation channel and has caused a “negative reversal” to be formed between RSI and price. A minimum decline to 1263 is anticipated on this signal.
Note that the Elliott Waves depicted by the price pulse model generally align with the Change-In-Trend points marked on the weekly chart by the green ellipses. I have also put in my “guess” as to the wave count from the October 2007 high. Of the possible choices I chose the a-b-c-x-a-b pattern because higher level price pulse model signals came in with the January 2008 low and February 1, 2008 high.
Bottom line: I now expect the S&P500 to retest the January and March lows.
Note that the Elliott Waves depicted by the price pulse model generally align with the Change-In-Trend points marked on the weekly chart by the green ellipses. I have also put in my “guess” as to the wave count from the October 2007 high. Of the possible choices I chose the a-b-c-x-a-b pattern because higher level price pulse model signals came in with the January 2008 low and February 1, 2008 high.
Bottom line: I now expect the S&P500 to retest the January and March lows.
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