Short Term Elliott Wave View in SPY suggests that the decline from March 03 high is unfolding as a 5 waves impulse Elliott Wave structure. Down from March 03, wave (i) ended at 423.54, and rally in wave (ii) ended at 432.20. the ETF then resumes lower in wave (iii) towards 417.89, and rally in wave (iv) ended at 423.03. Final leg lower wave (v) ended at 414.00 which also completed wave ((i)). Currently, SPY is developing wave ((ii)) and we are calling 3 swings to complete this correction as expanded flat. Up from wave ((i)), wave a ended at 429.51, pullback in wave b ended at 420.44, and wave c higher ended at 433.22 which completed wave (a).
Then we saw a correction lower in wave (b) with internal subdivision as a zig zag correction. Down from wave (a), wave a ended at 419.53, and rally wave b ended at 425.05. the ETF resumes lower in wave c which ended at 413.61 completing wave (b). Near term, expect to continue higher building an ending diagonal or impulse structure to complete wave (c) and the whole correction of wave ((ii)). As far as pivot at 441.56 high stays intact, rally should fail for further downside.
