S&P 500 EOD Review 7 Dec 2011
The S&P seems to have chosen a sideways correction. It appears that a Expanding Triangle is panning out with the final e leg of the Triangle pending. That would complete Minuette (x) according to my count. Previously, this was thought to be Subminuette ii but normally Expanding Triangles appear in either waves 4, B or X and hence, it is very likely this is a X wave.
Also take a look at the MACD. I had mentioned the last few days that it is toppish and needs to come down before moving higher and the MACD has indeed came down and approaching the zero line. This setup is similar to the one we had with the Minuette (x) of the previous move up. This is highlighted in the ellipse.
If it breaks above the top line of the Expanding Triangle, there would be an Inverted Head and Shoulders formation with a target of 1371. Again this same number is coming up.
Alternate View
Alternate view remains that this move up is Micro [2] but it is getting very close to getting invalidated.
S&P 500 Fibonacci Confluence
It appears that the S&P 500 has found support around the Fibonacci Confluence at 1252 – 1255.
S&P 500 Volume
The volume is still at average levels.
Elliott Wave Analysis 