標準普爾500指數
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SPX500 in a Potential Reversal Zone

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For those familiar with Elliott Wave analysis, a 5-3 wave sequence indicates the direction of the immediate trend. Its a little premature at the moment to identify a clear 5 down/3 up wave sequence, but as traders we do need to bring a little anticipation because by the time we know for sure what the waves are doing, the move is over.

Using fibonacci retracements (blue box) and fibonacci extensions (grey box), we have a 1959-1977 potential reversal zone identified.

The Risk:Reward ratio is fairly tight an anticipating this 5 wave down/3 wave up move. Initial targets (if this is indeed the pattern) would be slightly below August's low with a stop loss just above the July high.

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