In this Technical blog we are going to take a look at $SPX 4 hour October 13th 2016 chart. In which instrument was showing 5 swings from August 15th peak, which is incomplete bearish sequence in New Elliott wave theory. So the idea was selling the bounces against September 22nd peak in sequence of 3, 7 or 11 swings for potential downside target at (2104-2057), which was the 100%-1.618% extension area coming from August peak to complete the 7 swing sequence from the peak (which is also known as Double three Elliott wave sequence) before resuming the trend or bouncing in 3 swings at least.
$SPX 4 hour October 13th 2016 chart:
$SPX 1 hour NY Midday updated October 13th chart: Suggesting the index was doing 6th swing bounce labelled as wave ((x)) in black to correct the cycle from September 22nd peak & that bounce was expected to unfold in 3 or 7 swings in between 50-618% fib retracement area (2147-2155) before it find seller’s again for new lows below (2114.8) provided the pivot at (2179) peak stays intact or for 3 swings pullback at least to allow our member’s to create a risk position in the index.
$SPX 1 hour NY updated November 4th chart: gave us the reading that the bounce reached the 50-618% fib ret area (2147-2155) as expected in 3 swings labelled as (w) & (x) within ((x)) bounce & formed the peak at (2154.8). Since then index traded lower as expected & reached the 15 minute target area (2104-2057) from August peak.
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