Tuesday, April 3, 2012

S&P 500 ~ Elliott Wave Count ~ 3 April 2012

The waves since mid March are very difficult to count. It could either be an ending diagonal to complete blue wave 3 or a sideways correction before the SPX takes off again.

If it's an ending diagonal 1422 should have been the top and a correction to below 1390 should follow next (confirmation = break below 1390).

If I look at the Dow Jones and the Nasdaq the action since mid March looks more like a sideways correction though. So once the orange trendline is convincingly broken we could see another big move higher:

If we get this break above 1425ish the important support level for the medium-term trend moves from 1390ish up to today's low at 1405.