S&P 500 – Upside Target Hit – 09/14/23

The 09/13/23 blog “S&P 500 – Elliott Wave Count Update – 09/13/23” illustrated that the S&P 500 (SPX) could rally to a chart resistance area.  Today 09/14/23 the SPX hit that upside target.

Also noted in the 09/13/23 blog  (The shallow and choppy decline from the SPX 09/11/23 top at 4,490.77 labeled Minuette wave (a) counts best as an Elliott wave “Double Zigzag”.) 

The 5 – minute SPX chart courtesy of Trading View illustrates the Double Zigzag in greater detail.

Please use this chart for reference because it’s a classic example of an Elliott wave Double Zigzag correction. 

If you don’t use the Elliott wave method just remember the two main characteristics of a Double Zigzag. 

1. Shallow trend angle.
2. Choppy pattern, note the relatively deep rallies within in the decline. 

The 15-minute SPX chart shows the Elliott wave count from the SPX peak on 07/27/23 to 09/14/23.

A move above the 09/01/23 peak at 4,541.25 labeled Minor wave “2” will invalidate the presumed Minute wave “ii” – boxed wave count.

However, because of the rally  proportion since 09/07/23, and topping at chart resistance – a move above  4,511.99 would be suspicious.

There’s a good chance the SPX made an important top at 4,511.99.  If so, U.S. stocks could  begin a sharp and deep multi- week decline.