This Elliott Wave blog is dedicated to sharing Fibonacci ratios and other technical analysis for forex signals, index futures signals, options signals, and stock signals. Elliott Wave Principle puts forth that people move in predictive patterns, called waves. Identify the wave counts, and you can predict the market.
In my last post I projected a selloff the next day. The next day resulted in 8 S&P futures points being sold off. That is not nearly what I had expected. However, the decline did not alleviate any of the bearish signals in place, on multiple time frames, and multiple different markets. And today the sell signals have spread to the S&P and Dow cash indexes on the 130 minute charts as you can see you above.
My above wave count may be a bit aggressive. I think the market will go sideways and then rally somewhere surrounding the Fed announcement. That should mark the end of a five wave EWP rally.
There are a lot of fibonacci levels on the above chart, but the important price levels are 2200 – 2207 which should cap the rally. Then I see the market declining to 2167 before potentially finding a bottom.
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