S&P 500 – Short – Term Elliott Wave Forecast – 11/18/22

After powerful market moves either up or down the retracements are usually shallow. The crowd recognizes the main trend and quickly use pullbacks to participate in the trend. Elliott wave – Horizontal Triangles  frequently appear in shallow corrections and could be  developing in  the S&P 500 (SPX). 

Elliott wave – Horizontal Triangles  are  corrective patterns that only appear in the fourth wave position of motive waves and in the “B” wave positions of (A, B,C ) patterns. They are sideways movements  that are composed of five  sub – waves.  Each  of the sub-waves  are subdivided into three segments.  After completion of a Horizontal Triangle there’s usually a thrust in the direction of the main trend.

The 5 – minute SPX chart courtesy of Trading View illustrates a potential Horizontal Triangle.

With the NYSE closed on 11/24/22 for the U.S Thanksgiving day holiday,  and a shortened session on 11/25/22 its possible the SPX could meander sideways for most of the week.  The only potentially big market moving event is at 2:00 PM – ET – 11/23/22.  That’s the release of the FOMC minutes from their prior meeting. 

Important support is the SPX bottom made on 11/17/22 at 3906.54, a  decisive  break below that level could trigger a drop to the low 3,800 area.

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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