S&P 500
So we hearken back to the tweet I posted on the morning of Aug 16th after the S&P 500 made its high of 2193.81 on Aug 15th. https://twitter.com/dylan_dcosta/status/765496197243174912 Today we just follow up with an update of the Elliott Wave count up to that point and the price action thereafter.
The corrective pattern has been fairly shallow not even correcting 38.2% of the prior bullish move. We will try and break down the pattern in the Blue box to get a sense of where we might be going.
So for those that understand Elliott Wave theory we are in the process of a very complex Wave (C) where Wave 3 is underway. This count would suggest more downside however we should note that a move above 2119.36 might invalidate this count.
For those that don’t understand Elliott Wave theory my more simpler proprietary and visually appealing Risk allocation indicators continue to be in Risk off mode. Here we look at the indicator on the S&P 100 Index.
I will next update this blog after remembrance day. The election outcome is still a toss up but perhaps in a way it might actually help resolve the pattern one way or the other. Trade well.
