Charts on S&P 500 (INX): So Close to That Break Out

While the U.S. Dollar Index (DXY) dropped to our target region for a wave 4 pullback this week, and began to rally, the pullback seen on Friday seems a bit deeper than what we should see for this b-wave of an (a) wave of 5.  However, until we actually break below the low we struck this past week, I am going to maintain this count.  Therefore, it means we should still see a rally towards the 97.20 region before we top out.

However, should we break below the low we struck this past week, then it can provide us with 5 waves to the downside, and could be the initial signal of the larger degree change of trend I am expecting in the coming months.  However, I would need to see how the market rallies off the lower low to better make that determination.

So, for now, I will still look for a rally to the 97.20 region in the coming weeks.  However, should we break below last week’s low early in the coming week, then I am going to have to see how we rally off that lower low to make any further determinations.

5min-zoomSPX
5min-zoomSPX
60minSPX
60minSPX
1SPXdaily
1SPXdaily
LONGTERMSPX
LONGTERMSPX
Avi Gilburt is founder of ElliottWaveTrader.net.