The SP 500 staged an improbable come back on Friday November 8th from the 1747 lows of Thursday.
As it turns out, an examination of the shorter term waves can call the low at 1747 an ABC wave 4 bottom, and now wave 5 up to complete Major wave 3 seems under-way. Our Elliott Wave analysis continues on track, but a few short term adjustments are in order.
We had Elliott Wave targets of 1768-1829 for weeks now in that wide range. At 1829 we have symmetry with a 562 point rally from 1267 Major 2 lows, and that 562 is virtually identical to the 666-1221 wave structure off the bull market cycle lows in March 2009. That rally was 555 points, so at 1822 in fact we would have a nice neat 555 point Major 3 rally of Primary 3 to equal the initial leg up of Primary 1
Below is our updated Elliott wave analysis for the market:
Key support is 1747, the 20 day moving average, below that and we have a truncated 5th wave of Major 3 and we head lower….
So lets look at 1778 resistance again (704 point rally off the 1074 Primary 2 lows and equal to 704 point Primary 1 rally)
And then 1822 as next up in line.
1778 resistance, 1747 key support, 1822 next top target.