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