FLAT Elliott Wave Structure in SPX

We take a look at short-term price action in SPX500. We saw a perfect bounce from equal legs area in ( W ), rejection at 50% retracements, a marginal new low and then a very sharp rebound. Based on 9 swings down from 2019 and marginal new low before rallying impulsively, we think it’s doing a FLAT in wave ( X ) with equal legs  of A-B coming at 1976.73 and 1.236 ext of A-B at 1989 and should ideally drop to new lows after or at least pull back in 3 waves in the worst case scenario. We know market is in a 4 hour correction and corrections can take many different structures so our strategy is to wait for correction to resolve and then buy the Index for new highs. Ideal area would be equal legs of  (W ) – ( X ) when wave ( X ) has completed.

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