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.