Chopping Around - Market Analysis for Mar 15th, 2021


I wish there was more insight I was able to provide within the micro structure, but I am still of the opinion that we will likely continue to chop around in this region for the next few weeks.

When you look at the chart, you can clearly see that the market is still trying to complete waves iii, iv and v of wave 1 of [3] in the SPX.  That means that we likely have a bit of volatility to see in the coming week.   And, that will only be followed by further volatility as we then pullback in wave 2 once wave 1 completes.   

So, as you can see, and as we have already experienced this first day or the week, we will likely see more of the same action throughout this week.  

But, keep in mind and always remain focused on the likelihood that once this chop completes with waves 1 and 2 being in place, the next rally will likely be a very strong rally in wave 3 of [3], as I have been outlining.  So, please continue to take this time to focus on the individual stocks that still have a lot of opportunity being presented by our StockWaves analysts, and once we get the break out confirmation for wave 3 of [3], we can then begin to trade the long-side of the SPX in a much more aggressive fashion.  Remember, my minimum target for wave 3 of [3], based upon the current structure, is the 4400SPX region, and I think we will get there rather quickly, as that is simply the nature of 3rd waves.

Lastly, unless I see a CLEAR 5-wave decline from a high, I have no reason to strongly consider the alternative count in yellow at this time.

5minSPX
5minSPX
60minSPX
60minSPX
Avi Gilburt is founder of ElliottWaveTrader.net.