The Next S&P 500 Support Level – Part – Two

The 04/20/23 blog noted that the S&P 500 (SPX) had two Fibonacci support levels.  One at 4,107.81 and the other at 4,108.06.   On 04/21/23 the SPX low was at 4,113.86 only 5.80 points from the prime Fibonacci coordinate.

The SPX – 5 – minute chart courtesy of Trading View updates the action.

The Elliott wave pattern from 04/18/23 to 04/21/23 is clear, the entire structure is an Elliott wave – Single Zigzag.   Minuette wave (a) is a five – wave impulse.  Minuette wave (b) is an Expanding Flat.  Minuette wave (c) is an Ending Diagonal Triangle.

Unfortunately, how this structure fits into the larger pattern from the 03/13/23 bottom is unclear. There are several Elliott wave alternate counts to explain the action from 03/13/23  to 04/21/23.  There’s even a possibility that an important SPX top was made on 04/18/23. 

If next week the SPX were to break decisively below the two Fibonacci coordinates at 4,107.81 and 4,108.06 it could be a very bearish signal. 

The seasonal bullish period for stocks ends late April/early May.  We are now in that time zone.  The week of 04/24/23 to 04/28/23 could be the culmination of the rally that began in October 2022.  Or the start of a multi month decline. 


Published by Mark Rivest

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

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