$SPX Elliott Wave Analysis 4.21.2015

We have seen a good reaction higher from the lows supporting the view that dip on Friday completed an Elliott wave FLAT correction. Preferred view now calls for a pull back in wave “b” to hold above 2072 low & continuation higher. We don’t like selling the Index in proposed wave “b” pull back and as far as 2072 low remains in place, we would expect more upside toward 2121 -2138 area to complete wave “W” before another 3 wave pull back in wave “X’ is seen. Until 4/15 (2112) high doesn’t break, another leg lower can’t be completely ruled out but the best part is traders who bought the dip on Friday (after 5 waves down from 2112) high should now be in a risk free position. If it makes another low below 2072, then it would be a simple a-b-c down from 2112 high and should still turn higher as far as pivot at 2044.92 low remained intact in our system. Only a break of this pivot would open another extension lower.