Just after the open on 06/01/21 the S&P 500 (SPX) reached 4234.12 which is a 97.8% retracement of the decline from 4238.04 to 4056.88. The maximum retracement of the supposed impulse wave down from 4238.04 is 99.9%, in Elliott wave rules a 100% retracement would eliminate the bearish wave count.
The 30-minute SPX chart courtesy of Trading View illustrates the action after the all-time high.
One-minute after the open the SPX hit a rising trend line connecting the 05/14/21 and 05/25/21 tops – then trended down.
The SPX rally from the 05/12/21 bottom is choppy – the signature of a corrective pattern of the main trend. The Dow Jones Industrial Average and the Nasdaq Composite continue to lag the SPX. The 30-minute RSI had a double bearish divergence on the 06/01/21 SPX high.
The SPX all-time high is the key price area and holding below that level keeps the bear case intact.
Traders were stopped out of 50% of a 100% short position when the SPX moved above 4220.00 Continue holding 50% short.