Here is an update of the two hour chart as shown in the live chat room today. If you are interested in Elliott Wave, then I urge you to study this chart.
|SP500 - 2hr Chart - Complex Wave 4|
Notice that price has now crossed the EMA-34 for good form and balance in an impulse wave. Also, the wave 0 - 2 trend line has been broken, indicating the losing of momentum as volume shrinks over the holidays.
This chart would indicate that wave 4 would be expected to wrap up soon, so as to avoid an overlap with wave Minor 1. Then, there should be a fifth wave up, to Minor 5 - which should be shorter than Wave 3, because wave 3 is shorter than wave 1.
You will notice we are using The Eight Fold Path method (in the Featured Post) to count this impulse. It was started by selecting the time frame that provides the needed 120 - 160 candles on the chart. That time frame is the two-hourly chart in this case. This is a step most people don't perform, and many do not understand why they even need to perform it. We have been using that time frame since the charts first posted on December 14th.
The Elliott Wave Oscillator has re-crossed below the zero line, but it is not greater than -40% of the peak value in wave 3. The chart does not imply that the minute z wave of minor 4 can't go lower. In fact, it can.
But what the chart does tell us, in a simple and straight-forward manner, is that minor wave 1 should not be overlapped, downward before there is a new high in the market, or we likely did not make an impulse wave up. If a new high should complete as Minor 5, then we did, indeed, have a successful impulse.
And, if you think this chart is interesting, you should see the NQ futures chart. Hint: likely also in Intermediate wave (3) at this time, by my count... But, we'll save that one for later.
Take care as we are in the last few trading days of 2016.