Relief for the S&P 500 Index appears to be near, looking at the current downtrend from an Elliott Wave perspective. On the next chart, a 15 day 15 minute candlestick chart, I see a potential Motive Wave that has completed or is nearing completion.(click to enlarge)Click to enlargeS&P 500 Index - Potential Motive Wave Almost Complete
The three potential Elliott Wave breakdowns I illustrate indicate the following:
- Blue Wave - the downtrend ended today. Relief should be expected as early as tomorrow morning.
- Red Wave - the downtrend needs a few more days to complete and will include 1 or 2 additional down days in the triple digits.
- Green Wave - the downtrend needs a few more days to complete, finishing its downtrend with an Ending Diagonal Wave Pattern.
After the development of the Motive Wave to the downside, a corrective wave should follow. The corrective wave should bring the S&P 500 back to the 1830 range. The completion of the Motive Wave and then the Corrective Wave should look something like this next illustration:
Once the market gets back to the 1830 range, supply and demand at that point will determine the market's next short-term move. However, watching price and volume action as the S&P 500 starts rebounding could give clues to that next move. Stay tuned.