Nothing Can Stop This Market - Except?

Since 2015, the market has been providing us with an almost textbook pattern to follow, and has led us quite well to maintaining on the proper side of the market through its twists and turns.

http://goldseek.com/news/2017/5-17ag/1.png

 

Of late, when we called for a market pullback/consolidation on March 1, the market has complied quite well, and provided us with what I have primarily counted as an a-wave to a wave (iv), which struck its target at the .236 retracement of wave (III).

Moreover, when we called for 2330SPX to hold a month ago and set up a rally to 2410SPX, that too followed the textbook patterns we have been following.

But, now the market has a decision to make. You see, my primary expectation is for the market to now provide us a c-wave drop in the coming weeks to complete a larger degree wave (iv). The resistance for this potential is the 2410-2425SPX region. And, as long as we remain below that resistance, then I am looking for a drop to at least the 2330SPX region, but, more preferably down to the 2285SPX region to complete wave (iv). An impulsive break down below 2381SPX is a strong signal that the c-wave is in progress.

However, if the market is able to break out through resistance before providing us our c-wave down, then it suggests it will be taking the more direct route to the 2500SPX region to complete wave (V) of (3) a lot sooner than I had expected.

And, as I have noted so many times in my trading room at Elliottwavetrader.net, please do not forget that this is a bull market, and it must be respected as such. For this reason, I am not suggesting anyone aggressively trade for a c-wave down. Rather, any c-wave down should be used as an opportunity to add to your long positions.

See chart illustrating the wave count on the S&P 500.

 Elliott Wave Chart

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Avi Gilburt is a widely followed Elliott Wave technical analyst and author of ElliottWaveTrader.net ( more

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