SP500 has likely extended wave (2) with a double three and has a good chance to resume the ride southbound.
In this Daily analysis, I will evaluate the candles that SP500 formed on multiple frames, compare them to the candle formations in other major US indices and some Large Cap stocks. We will discuss technical events on different frames and provide the long- and short-term targets for the next moves.
The long term SP500 perspectives were outlined in September 2021, 15 months ago.
The same chart taken yesterday – below. The 2022 Yearly Analysis .
The ETF candles today formed bearish setups with a special concern for QQQ. They all need confirmations.
All four technical daily trends remain bearish.
SP500 closed December with an active quarterly MACD cross. An impact and time and target estimates were discussed on September 25th.
Let’s now have a look at Elliott Waves.
ELLIOTT WAVES – SP500
The long term chart below was made 15 months ago. The current hypothesis is that SPX completed wave A of IV in June and possibly done with wave B in December.
I continue to track two paths for the whole correction – green and red.
Wave B ended and wave C is gaining momentum.
Wave 3 is underway.
Both counts expect an acceleration down for the next several weeks.
Target area: $3000-3270
Possible bearish micro path: completed a double three for wave (2).
Target area: $3340-3670
No changes in this section.
SUMMARY & FORECAST (premium):
SP500 Yearly Analysis – Jan 2nd:
Weekly/Monthly/Long Term Analyses (DOW, NASDAQ, RUSSELL, Commodities, Precious Metals and other):
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