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S&P 500 - Relief May Be Near

|Includes:S&P 500 Index Linked Notes (GSD.B)

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:

  1. Blue Wave - the downtrend ended today. Relief should be expected as early as tomorrow morning.
  2. Red Wave - the downtrend needs a few more days to complete and will include 1 or 2 additional down days in the triple digits.
  3. 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:

(click to enlarge)Click to enlarge

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.

Stocks: GSD.B