As international contrast is brewing and uncertainty rises, it is always time for an Elliott’s soup, aka a view on the Elliott’s Wave theory applied to S&P 500.
So, here are the charts:
The charts show a positive attitude, but a declining one through the timeframes.
- Very positive the monthly long term, with a nice high target
- Positive the medium term weekly, pointing to a return to the previous all time’s high
- Less favourable is the short-term daily, which seems to have reached the fifth wave target with a not-so-healthy impulsive dynamic and seems to be in difficulty rising above the strong resistance of the declining trendline.
What can we expect in the short term? Probably a push back, if we consider the daily 1-2-3-4-5 as larger completed (1) and going for a (2) will test support in
3880/50 4015 area, with a possible extension near 3800 3990. (*)
If so, the overall positive dynamic may be considered to continue.
(*) corrected after 2023-02-03 close