Minor weakness in the US Dollar allowed the S&P 500 Index to find support and push higher toward a potential fifth wave of 3 (Elliott wave).
The German DAX is also attempting to bounce after bottoming around 16200. This is sending the index back into a new high for its fifth wave of 3.
As these larger wave 3’s peak there can be some slowdown coming as the higher degree wave 4’s take shape. Potential support is 16000 psychological level, at the previous highs from August.
The S&P 500 is coming nicely higher for the last few weeks, unfolding in a clear bullish five-wave impulse on the 4h chart. Price is trading at all-time highs after a broken base channel that normally puts wave three of three in play. As such, we will expect more upside after any retracement, especially after a red wave 4) set-back. The upward projection for the current fifth wave of 3) is at around 4760-4800, while important support would be around 4600-4630.
Twitter: @GregaHorvatFX
The author may have a position in the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
