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 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

S&P 500 EOD Review 19 Dec 2011

The S&P 500 started with a correction with an Expanding Triangle pattern and later it started to look impulsive. Now we have an impulsive looking downwards move which hit came close the target of 1200. If indeed this is a correction, then, it should be done and should start heading upwards in impulsive pattern. If it heads lower from here, then heavy selling can be expected and much lower levels are likely.

S&P 500 EOD Elliott Wave Chart 19 Dec 2011

The MACD is diverging and that is an indication that this down move has ended or is close to completion.

S&P 500 Fibonacci Conflunce

It broke through the band at 1210 and the next band is at 1184 – 1187.

S&P 500 Daily Fibonacci Chart 19 Dec 2011

S&P 500 Volume

The volume is declining and that also indicates waning selling strength.

S&P 500 Daily Volume Chart 19 Dec 2011