SPX is now completing the 4th corrective wave of 1-2-3-4-5 Elliott Motive Wave which started in October 2022. In the 4th corrective wave, 1-2-3 waves have formed and waves 4 and 5 will complete the contracting triangle formation. Thereafter, the 5th impulse wave will begin.
The 5th impulse wave is between inverse 100 to 161.8 percent of wave 4. This is in the region of 4800. But it's unlikely that SPX will reach 4800 in the 5th wave. It will face strong resistance between 4700 and 4750. From November 2021 to January 2022, SPX was thrice rejected at 4730 level.
When 5th wave is complete, a major correction may take place, going all the way to 4200. This may happen in the second quarter of 2024. By then, my expectation is that the effect of interest rate hikes would kick in really bad. And if so, SPX may plummet all the way to 3800.
The 5th impulse wave is between inverse 100 to 161.8 percent of wave 4. This is in the region of 4800. But it's unlikely that SPX will reach 4800 in the 5th wave. It will face strong resistance between 4700 and 4750. From November 2021 to January 2022, SPX was thrice rejected at 4730 level.
When 5th wave is complete, a major correction may take place, going all the way to 4200. This may happen in the second quarter of 2024. By then, my expectation is that the effect of interest rate hikes would kick in really bad. And if so, SPX may plummet all the way to 3800.