S&P 500 Elliott Wave Analysis – 21 May 2012
The S&P 500 reached a low of 1292 end of last week. This was within the expected target range as published earlier based on the Head and Shoulders formation. In this session, the S&P 500 put in a 20 point upwards move which looks like a decent move. It looks like impulsive waves but we need further confirmation before we can tell for sure whether the market has turned up. This wave up could be a zig-zag correction before the S&P 500 continues on its way down.
The bias has clearly turned down. The previous support lines will now turn as resistance. The MACD which has turned down would need to be turned up. So all this is going to make it tough for the bulls going forward but easier for the bears. But it is hard to tell at this point in time. The market could just head higher from here like what it did after the sell off in the previous Minute wave [x] and chug along higher.
S&P 500 Fibonacci Confluence
The S&P 500 turned up after hitting the next major Fibonacci band at 1296.
S&P 500 Volume and MACD
The volume is thin. The daily MACD has clearly turned down.