Elliott Wave Analysis of S&P 500 - Expanded flat wave ii correction near completion
On January 22 I called for a completion of the ending diagonal (You can see that post by clicking here). On January 27 the ending diagonal support-line was broken near 3,815 indicating the completion of the formation that has been building since October 2020.
The decline following the break below the ending diagonal support-line is in five waves indicating more downside pressure to come after a correction in wave ii. This wave ii correction has developed into an expanded flat, this indicates an extended decline should be expected in wave iii.
The first extension target for wave iii is seen at 3,588 followed by 3,550.
Short-term a break below minor support at 3,824 will indicate the completion of wave ii and that wave iii lower to at least 3,588 is unfolding.
Stay tuned for renewed downside pressure soon.
Remember that the trend and patience are your friends
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