Monthly chart From 2009 lows of 667 -it has rallied in a parabolic fashion to current highs of 2277 which can be counted as near to 5-waves in blue color on Monthly chart.
Daily Chart Since 1810 lows in Feb2016- all waves overlap, giving an impression of wedge structure - an ending diagonal.
4H chart Trendline passing through 1- 3 wave has holded as if now & can act as resistance for short term.
Short Term Trading Strategy Keeping resistance intact from trendline passing through 1-3 wave - we can expect some correction going into zone 2187-2200 in coming days.
Long Term Trading Strategy Once trendline passing through 2-4 wave in daily chart gets breached downside & possibly it starts moving below 2080 -that will be indicate that SP500 has put the top- in that case setback can be seen going into 2017.
Trade active
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18:20 Hrs 22nd Dec2016
Last Price@2265
Prices had a sharp fall till 2248 on a Fed Day - post that session-it is moving sideways so kindly avoid taking sell positions till Fed Day@2248 is broken & it sustains down or wait for a new high to take sell positions- Which I shall update here.
Comments
JohnKer
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Sir, the mkt is going much higher yet. On your daily chart where you have the purple 1-2-3-4, I believe the correct labeling is 1-2, 1-2. Noting your purple wave 4 is overlapping the top of wave 1 which is incorrect EW counting. We are in a wave 3 now, 2380 is one target over the long term. Then Wave 4, then 5 yet to new highs yet.
WaveTalks
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@JohnKer, Don't know its correct or wrong-That's my side of labels. You can also be correct. Only Markets has right to correct or wrong someone.
JohnKer
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@AbhishekHSinghCMT, I'm talking about the rules of Elliott Wave, I've been doing this for 26 years now. The rule is "Wave 4 cannot overlap wave 1, except in diagonal triangles and sometimes in wave 1 or A waves, but never in a third wave. In most cases there should not be an overlap between wave 1 and A". Your labeling shows wave 4 overlapping wave 1 and we are not in a diagonal triangle, is my point.
WaveTalks
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@JohnKer, That's what I said -its a wedge - Ending Diagonal so wave -4 overlaps for me -if goes above 2290 that is when this structure gets invalidated & by the way I have mentioned clearly above that its an ending diagonal from my point of view
sanjivt
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Dear Abhishek, I'm short on S&P as of today and agree with your monthly EW count. But if wave 5 were to achieve equality with wave 1, then wave 5 will end around 2365? Do you think this could happen going into the year end? Thanks
WaveTalks
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@sanjivt, That could be a possibility, making a new in that case I will have to modify the count & it won't be a wedge structure any more if it goes above 2300- At present, it looks some pullback- let us see where it gets support or it breaks 2080.
Smartpredictor
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And what if we exceed 2277 SPX or the shown channel - will change your EW count? SPX is targeting 2298-2314 SPX by year end in my humble opinion.
WaveTalks
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@Smartpredictor, Yes, in that case structure invalidates & shall be no more valid
Smartpredictor
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@AbhishekHSinghCMT Abhishek so 2277 is busted as of today. Thoughts?
WaveTalks
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@Smartpredictor, it's running late in upside move & I really don't want to take risk as we all know markets fall on euphoria & I am getting a sense of euphoria. I will just say be careful.