S&P 500 Elliott Wave Update 15 March 2012
The expected final leg up has been made to complete Minuette (b). Although this wave looks like a five wave impulse, the third wave is shorter than the first wave which is still valid but not usual. In that respect, it is more likely to be zig-zag which is what is expected for the Minuette (b). The first two legs of the contracting triangle scenario is forming as expected. Note that Minuette (b) is 1.61 times of wave (a).
We can expect Minuette (c) wave to trace out next with a target of 1364 which is 0.618 of wave (b). The other possibility is for the (c) wave to retrace the whole of wave (b) in which case, it turns out to be a triangle with a flat base.
S&P 500 Fibonacci Confluence
The stock market is sitting between two bands. The top of the lower band is at 1363 which is the target region for the wave (c). The next upper band is at 1420 -1443.
S&P 500 Volume and MACD
The volume has picked up the past few days and is slightly above the average. The daily MACD signal has now crossed and is turning up. I’m expecting this to turn down.