The SPX500 is showing signs of breaking down. ADX is favoring the downside as –Di is at 25.58 above +Di at the 21.85. ADX is at 12.13 which is ranging. Price is trading above the 200 SMA but below the 50 SMA. The 20 SMA has dropped down below the 50 but still holding above the 200 SMA. This all signals a weakened upward momentum.
ELLIOTT WAVE STRUCTURE SPX500
SPX500 DIALY BAR
SPX500 WAVE STRUCTURE: Intermediate Degree (2) is still intact. And so far a series of 1-2s that have developed with the preceding drop.
Note that there is a chance this series can be a zigzag. If price moves up and pushes above the 4079.41 March 06 high, then the chances it’s a zigzag increase. And a move above the 4196.55, the series would be labeled a zigzag.
SPX500 4-HOUR BAR
From the 4-hour bar below, you can see that I have labeled the 3920.79 march 02 low as Minute circled i. And the 3808.17 March 13 low as Minuette (i).
SPX500 1-HOUR BAR
The series down from the 4043.57 March 22 high has been invalidated for a Micro Degree leading diagonal for Subminuette i at the 3908.60 March 24 low. Notice that the rally up from the 3908.60 March 24 low breached the 4010.05 resistance putting and end to the 1-2 series down from the 4043.57 March 22 high. A move above the March 22 high invalidates Micro ii which could push Minuette (ii) higher.
However the move up from the 3908 March 24 low is exhausting and should give way to the longer term downtrend soon.
