The 06/15/21 blog “ Revised daily S&P 500 Elliott Wave Count – 06/15/21 speculated that an Elliott wave – Ending Diagonal Triangle (EDT) was under construction from the S&P 500 (SPX) 05/12/21 bottom. Today 06/18/21 the SPX went below what counts as the EDT -Minor wave “2”. The post 06/15/21 decline was a supposed wave “four” and under Elliott wave rules wave “four” can never exceed the termination point of wave “two”. Therefore, something else is developing.
The 30-minute SPX chart courtesy of Trading View illustrates the most likely Elliott wave count.
It appears the EDT up from the 05/12/21 bottom is probably complete as of 06/15/21 peak.
An alternate wave count – has a larger EDT from the 05/12/21 bottom is forming. If so the drop from 06/15/21 could be a developing wave “two”.
Another alternate count is that a Horizontal Triangle is forming from the SPX 04/29/21 top. The 05/12/21 bottom could be wave “A”, the 06/15/21 peak could be wave “B”, and wave “C” could be underway.
Momentum and Sentiment evidence argues strongly against these alternate counts. This evidence will be illustrated in the next blog.
Four Dimension Trading 