PRO-ELLIOTT-WAVER

For 18+ months we've been watching the SP basically go nowhere. The parabolic move in late 2017 had all the characteristics of a third wave as labeled on the chart.  Since that time we have patiently watched for signs that wave four had formed and that wave five had begun.  The three wave decline into last December could have been a large three wave w-x-y flat completing all of wave four. However, three wave patterns  down and up are all that we have especially with the recent new highs that bumped against the trend-line counting as only another three, so far. Our primary count because of this has been and still is that wave four is still in progress. If this is correct then we could see a large expanding triangle structure that needs one more three wave move down breaking the December low to form wave-e.  These patterns are rare with the last one being in the late 1960 early 1970's which in our opinion was a "cycle" degree with the current triangle being at...

Price should be working on a five wave rally which will complete wave (C)of  [B] as shown on the chart. The first target is the upper red channel line currently sitting around 1535.00 which also corresponds with (C) being equal in length to (A) around 1532.00. Breaking above this area by much for an extended period of time would be bullish for a further move to the 61.8% Fib retracement level around 1680.00. This would also come as a surprise! A break and over-lap of wave 1 before completing the five wave structure would be bearish. Follow the Trend and "Trade Safe"