Short Term Elliott Wave view in SPX suggests the rally from 3/27 low (2322.2) is unfolding as a leading diagonal Elliott Wave structure where Minute wave ((i)) ended at 2378.36, Minute wave ((ii)) ended at 2328.95, Minute wave ((iii)) ended at 2398.16, and Minute wave ((iv)) ended at 2379.75. The Index has broken above previous Minute wave ((iii)) and thus it has met the minimum requirement in the number of swing to end cycle from 3/27 low as a diagonal.
However, while near-term pullbacks stay above 2379, further upside still can’t be ruled out before cycle from 3/27 low ends. Near-term focus is on 2403 – 2406 area to complete Minutte wave (a), then the Index should pullback in Minutte wave (b) in 3, 7, or 11 swing to correct the cycle from 5/3 low before the Index resumes higher. We don’t like selling the Index.
SPX 1 Hour Elliott Wave Chart 05/09/2017
(Click on image to enlarge)
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