Last post on the SPX500 called for at least a consolidation from the wedge formation. We got one now with the trendline break, and sharp one too! Although oversold in the very short-term, with the possibility of a weak bounce, we can expect further downside into next week.
Any bounce up will be capped by 1100-1105spx, before turning down. In the unlikely event of a further push up, 1120-1130 will definitely contain the price in the short-term.
Price is right now at 1090 support. A convincing break below will see next support around 1060 & 1040. SPX behaviour at 1010 is key for medium-term direction.
Elliott Wave Labelling
Looks like wave B(or 2) correction has ended, and wave C(or 3) down has started. Just before the last trading session, Robert Prechter of Elliott Wave International released an Interim Elliott Wave Theorist, warning of imminent downside action, along with his wave count.
Check out the "Education & Resources" section if you need more information on Elliott Wave Theory. All the best!
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