S&P 500 EOD Elliott Wave Analysis 17 Nov 2011

S&P 500 EOD Elliott Wave Analysis

The S&P 500 made what looks like a zig-zag correction and stopped right at the blue and green support lines. I had mentioned previously that this area should present a strong support region. But we need to let it pan out further and see which way it heads from here. The Triangle is still very much in effect until we can see a clear breakout. This move down is most likely wave e or the final leg of the Triangle.

16 Nov 2011 S&P500 EOD Elliott Wave Chart

After being trapped in the Triangle for almost three weeks, a breakout is imminent. The question still remains whether is it to the top side or bottom. Any move above 1278 would indicate a bullish move and a move below 1227 would indicate a bearish move.

The volume is lower than the previous down legs of the Triangle. This could be interpreted as drying up of selling volume. But it is still possible that the selling volume increases today or tomorrow and we get a breakout to the bottom.

STI and HSI Charting the Move for 15 Nov 2011

It was lacklustre day in the US Markets in the last session. S&P 500 seems to be trapped in a Triangle but is expected to breakout soon. STI and HSI are both expected to mimic the similar lacklustre performance. STI is currently down by 0.35% and it was a gap down. I believe that this is a correction and I expect the STI to head higher from here to close the gap and hit 2850 region before turning down for another correction.

Similar performance can be expected in HSI. I expect it to gap down to 19450 region before turning up and heading towars 19800.

S&P 500 EOD Review 14 Nov 2011

The Triangle option is working out quite well. I believe that we are either in the d wave of the Triangle or the e wave which is the last wave. Price is approaching the strong support region and should move up from there. If the price breaks to the upside and goes above 1277, the minimum target for the up move would be 1342.

Price is being squeezed currently and the next move either up or down would be sharp. Careful not to be caught on the wrong side.

14 Nov 2011 S&P500 Elliott Wave Chart

The Alternate view is that we are in the early stages of a down move but this view is fast losing confidence. If the move goes below 1227, then a down move is underway.