One More Decline Likely

The prime Elliott wave count for the S&P 500 (SPX)  is a series on “one’s” and “two’s” down based upon the  long-term bearish evidence which has been noted on this website during the last few months.

The alternate Elliott wave count is a developing Double Zigzag correction within a possible ongoing bull market since March 2020.  This wave count is based upon advanced/decline line and new – 52 – week low bullish divergences recorded on 09/20/21 vs. the 08/19/21 bottom.        If necessary, these bullish divergences will be examined in a future  post.

The 30-minute SPX chart courtesy of Trading View illustrates both wave counts.

If the alternate wave count develops it implies a decline to at least to the 09/20/21 SPX bottom at 4305.

The prime wave count implies a very sharp decline to at least the low 4100 area.

Traders are short 150% non-leverage SPX funds.  Continue holding short.

Published by Mark Rivest

Independent investment advisor, trader, and writer. Articles have appeared on Technical Analysis of Stocks and Commodities , Traders.com Advantage, Futuresmag.com, and Finance Magnates.

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