S&P 500 Elliott Wave Analysis – 16 May 2012


S&P 500 Elliott Wave Analysis – 16 May 2012

The S&P 500 made further move to the downside and closed at 1324. The move is getting choppy indicating that the selling is exhausted. Yesterday I said that a relief rally to 1362 is likely and that is looking more likely now. The divergence on the hourly MACD is still in place. After the rally to 1362, S&P 500 is expected to sell off to 1290 region.

S&P 500 Technical Analysis Chart 16 May 2012
S&P 500 Elliott Wave Analysis Chart 16 May 2012

The alternate view is that the S&P 500 has completed Minute wave [x] and Minute wave [z] is about to start.

The below chart is the daily chart which displays the head and shoulders pattern and the expected target.

S&P 500 Daily Elliott Wave Chart 16 May 2012
S&P 500 Daily Elliott Wave Chart 16 May 2012

S&P 500 Fibonacci Confluence

The S&P 500 is now between two major Fibonacci bands. A correction to 1362 is expected and thereafter, further slide to the next band at 1282 – 1297.

S&P 500 Daily Fibonacci Confluence Chart 16 May 2012
S&P 500 Daily Fibonacci Confluence Chart 16 May 2012

S&P 500 Volume and MACD

The volume is still thin. The daily MACD has now been captured by the bears.

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About Shivakkumar Vadiveyl

Shivakkumar Vadiveyl is a blogger who helps Investors get better in Investing by publishing Articles on Investment, Retirement Planning, Gold, Silver, Stocks and Currency Markets. He uses Elliott Wave Analysis, Classical Trend Channel and Candlesticks as the Primary Analysis Tool.