S&P500 ~ short term five wave impulse formation...
Last week we saw the futures decline to complete five waves from Tuesdays high to the low on Thursday. The subdivisions of the five waves provided us with several Elliott patterns as labeled on the chart. Wave-iii had five sub-waves ending with a diagonal [5] of iii that was followed by a triangle pattern for wave-iv. Once wave [E] within the triangle completed price dropped to a new low tagging the lower trend-line to end the five wave decline. The chart also points out that wave-v was the same length as wave-i. The decline can only count as five waves of -c- of an a-b-c or wave (i) starting the next impulse decline once the market corrects for wave (Ii). The problem with the wave (Ii) scenario is that Friday's reversal appears to be forming five waves up which would be bullish for a move above Tuesdays high at a minimum. Follow the trend and "Trade Safe"