Expanding Flat Could be Nearing Completion

Elliott Wave – Ending Diagonal Triangles (EDT) are  termination  patterns that appear only in the fifth wave positions of motive waves and in wave “C” of corrective waves.  They frequently show up in the  “C” wave of Expanding Flats.

The hourly S&P 500 (SPX) chart courtesy of Trading View illustrates an  Expanding Flat that began on 11/22/21, with an EDT that began on 01/04/22.  

The presumed Intermediate wave (A) was 248.71 points.

The presumed intermediate wave (B) was 323.50 points.

The ratio of B/A is  323.50/248.71 = 1.30.  The most common Fibonacci ratio of “B” to “A” in Expanding Flats is 1.236. The next most common Fibonacci ratio is 1.382.  The 1.30 ratio splits the difference.

Multiplying wave (A) 248.71 x 3 equals 746.13 points. 

The wave (B) high is 4818.62 minus 746.13 equals 4072.49 as a  target for Intermediate wave (C).

Multiplying wave (B) 323.50 x 2.382 equals 770.57 points.

Subtracting 770.57 from 4818.62 yields another target of 4048.08 for Intermediate wave (C ).

There’s chart support at 4056.88 the correction bottom made on 05/12/21.

The broader support zone for Intermediate wave (C ) 4040 to 4080.

The wave (C ) could bottom on 05/11/22 or 05/14/22.

Depending on market conditions the next blog will examine how the presumed Expanding Flat fits within the broader Elliott wave pattern since March 2009.       

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.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: