Short Term Elliott Wave View in SPX suggests the decline from January 4, 2022 high is unfolding as a double three Elliott Wave structure. Down from January 4 high, wave w ended at 4222.62 and rally in wave x ended at 4595.31. Index has extended lower and broken below wave w at 4222.62 confirming wave y leg lower has started. Down from wave x, wave ((W)) of y ended at 4153 as a double three structure.
Wave ((Y)) rally is now in progress to correct cycle from February 3 high before the decline resumes. Internal subdivision of wave ((X)) is unfolding as a zigzag Elliott Wave structure where wave (A) ended at 4388.84 and pullback in wave (B) ended at 4279.54. Expect the Index to extend higher in wave (C) with internal subdivision as 5 waves. Afterwards, Index should also end wave ((X)) of y in higher degree and starts turning lower again. Near term, as far as pivot at 4595 high stays intact, expect rally to fail in 3, 7, or 11 swing for further downside. Potential target lower is 100% – 161.8% Fibonacci extension of wave w which comes at 3629 – 3998.