Elliott Wave Analysis: S&P500 In A Temporary Correction, Possible Reversal Seen Around 2012
E-mini S&P500 is trading sideways for the last few days which means that price is probably trapped in a correction. At the moment, we are looking at red wave B) that can be a triangle rather than a zigzag, because of contracting shape. However, it’s still a bearish pattern that can cause a drop down to around 2012 support with wave C), where market can be looking for a bottom this month.
A Triangle is a common 5 wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. Triangles are overlapping five wave affairs that subdivide into 3-3-3-3-3.
A Triangle pattern:
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