S&P 500 May Find Support Around 2020

Grega Horvat

S&P500 is reversing sharply lower and approaching former swing low that will probably be taken out based on strong bearish sentiment. However, any new swing low would still be only third leg down from the high so we suspect that move may still be corrective. Ideally wave B), but just more complex than before, but still part of a wave five that, within a final leg of an ending diagonal. If we are correct, then current strong bearish move should stop around 2020 level where we see nice Fibonacci levels for potential bounce in price.

S&P500 4h Elliott Wave Analysis

S&P 500 4 Hour Chart

Source: www.ew-forecast.com