Potential Thrust Down and Bottom on 01/06/23

The S&P 500 (SPX) moves up from 12/19/22 to 01/04/23 have been shallow and choppy, the signature of a correction in a down trend.  Specifically, the movement  appears to be an Elliott wave Horizontal Triangle. 

The 30-minute SPX chart courtesy of Trading View shows how this pattern fits within the  action since the 10/13/22 bottom.

The best count for the move down from  12/13/22  appears to be a developing Elliott wave – Single Zigzag (A-B-C), with a Horizontal Triangle composing Minor wave “B”.

Fibonacci evidence within the sub waves supports this theory.

Minute wave “b” is 1.382 the size of Minute wave “a”.

Minute wave “e” is .618 the size of Minute wave “b”.

Minute wave “d” is close to equal  of  Minute wave “e”.      

If this wave count is correct there could be a sharp move down to and possibly bottom in the 3,725 to 3,680 area. 

A bottom could be made in the first hour of trading on 01/06/23.  If the SPX continues its drop into the last trading hour of 01/06/23, a more bearish move could be developing.

If the SPX moves above 3,889.82 before breaking below 3,764.49 it would invalidate the presumed Horizontal wave pattern.

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: