S&P 500 EOD Review 22 Dec 2011

The move up is losing momentum and it does not look like a strong impulsive move. The latest development is that the Micro [4] and [5] has panned out. This means that Subminuette i has just completed and we can expect Subminuette ii next with a target of 1230. If it goes deeper than that, then most likely, the Minuette (x) is not complete yet and the final Subminuette c of Minuette (x) is playing out. That move will have a target of 1200.

Notice that the red lines are coverging quickly and a move out of that range is expected in then next few sessions and is likely to be a strong move. It could be in either direction.

S&P 500 EOD Elliott Wave Chart 22 Dec 2011

S&P 500 Fibonacci Confluence

The S&P 500 hit the next Fibonacci Confluence band at 1252 – 1254. I’m expecting the S&P 500 to head lower from here and hit the 1228 band.

S&P 500 Daily Fibonacci Chart 22 Dec 2011

S&P 500 Volume

The volume is getting lighter as the S&P 500 heads higher. Not a bullish setup and likely to see a pullback.

S&P 500 Daily Volume Chart 22 Dec 2011

S&P 500 EOD Review 21 Dec 2011

This completes the Subminuette i and we can expect Subminuette ii next to bring the S&P 500 to 1225. The MACD has broken the zero line and is heading downwards again. We can expect it to test the zero line and move upwards again which would be a very bullish move.

The range is tightening (as bounded by the red lines) and break out of this range is expected soon. It is likely to be a swift and powerful move once the S&P 500 breaks out of this range.

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S&P 500 EOD Elliott Wave Chart 21 Dec 2011

 S&P 500 Fibonacci Confluence

The S&P 500 broke through the Fibonacci Confluence line at 1241 and closed above that. But I expect the market to head lower to 1225 before progressing higher from there on.

S&P 500 Daily Fibonacci Chart 21 Dec 2011

 S&P 500 Volume

The volume is healthy although slightly lower than the previous session. This is a healthy bullish setup.

S&P 500 Daily Volume Chart 21 Dec 2011

S&P 500 EOD Review 20 Dec 2011

Finally the S&P 500 moved in a decision pattern and it was to the upside breaking through a few key trendlines and Fibonacci band. This marks the end of Minuette (x) and the begining of Minuette (y) with a target of 1370 or even 1400. I’m labelling the move in the last session as Subminuette i. Subminuette ii is expected next with a target of 1225. Thereafter, Subminuette iii to take the S&P 500 to around 1270.

The divergence in the MACD as mentioned in yesterday’s review proved to be a key reversal indicator.

S&P 500 EOD Elliott Wave Chart 20 Dec 2011

S&P 500 Fibonacci Confluence

The S&P 500 broke through the key Fibonacci Confluence band at 1220 – 1228.

S&P 500 Daily Fibonacci Chart 20 Dec 2011

S&P 500 Volume

The volume is quite decent and it looks like a healthy bullish move. But one tick does not make a trend and we’ll need to see the strength of the pullback in Subminuette ii to confirm whether is this a bullish move or not.

S&P 500 Daily Volume Chart 20 Dec 2011