S&P has closed at an all time new high and now the only thing left is to see a new intraday all time high above 1687. Trend remains up but bulls need to be cautious and raised their stops to protect their profits. Our favorite Elliott wave count that was showing bullish strength and new all time highs prevailed over the alternative that was implying a wave II correction would end near 1660-70 area. It is time now to analyse the upward move from 1560 and see what is possible next.
S&P has two very possible wave counts that are shown above. The first wave count takes into consideration the upward wedge is labeled with red numbers, implying that we are in the 5th final wave and soon we are going to break the wedge downwards and retrace at least towards 1640-30. The second scenario implies that we are currently in wave 3 and that we should see a corrective wave 4 towards 1670 and then a final wave 5 towards 1700. Critical support level for bulls is the 1600 price level.
Concluding, we remain bullish but with raised stop at 1680. Breaking out of the wedge will push prices towards 1670. If that level is broken too, then we should see more downside towards 1640. More updates and analysis for our members at our exclusive twitter account @trading2day.
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