News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am ET on DailyFX! https://t.co/lxd5fZ5LG7
  • (Weekly Fundy) Crude Oil May Rise as Covid Case Growth Slows. WTI Eyes OPEC Outlook, Evergrande #CrudeOil #WTI #OPEC #Evergrande https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2021/09/26/Crude-Oil-May-Rise-as-Covid-Case-Growth-Slows-WTI-Eyes-OPEC-Outlook-Evergrande.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/76e2aGf3p0
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4Cnoc1dk0 https://t.co/NhsMS1EY4b
  • We are heading into the final trading days for the month of September and event risk thins out amid the $SPX's rebound. This is what history says for the 39th week of the year and here is my take on the variable factors: https://www.dailyfx.com/forex/video/daily_news_report/2021/09/25/SP-500-and-Dollar-Have-Different-Views-for-Last-Week-of-September.html https://t.co/4OBVmrvI7I
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today: https://www.dailyfx.com/free-trading-guides?ref-author=social#forecastschoices=AUD?QPID=30472&CHID=9 https://t.co/LHJi7CNFmM
  • $EURUSD https://t.co/KZyXX6p2oI
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Find out about the recent history of ISM data, how to track it, and how to trade its release here: https://t.co/MZtBh8pYG3 https://t.co/1zNf5dpDjU
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/z8z6BNudn5
  • #PELOSI SAYS WE ARE GOING TO PASS THE INFRASTRUCTURE BILL THIS WEEK PELOSI SAYS SHE WILL NEVER BRING TO THE HOUSE FLOOR A BILL THAT DOESN'T HAVE THE VOTES TO PASS $USD $SPX $XAUUSD
  • Short-term uncertainties to keep the pressure on equity markets. Get your weekly equities forecast from @JMcQueenFX here: https://t.co/JLMDPZKvN8 https://t.co/YbdJnwoqj1
S&P500 correcting in wave 4 pullback?

S&P500 correcting in wave 4 pullback?

Paul Bratby, Trade the Fifth,

With the S&P500 recently making slight new highs, investors and traders are beginning to wonder if a correction is about to begin.

To understand a little more we need to look back on the weekly chart and look at the trend behaviour since the end of calendar year 2015. On the weekly chart below, we can see the longer-term trend over the last four and a half years has respected Elliott Wave rules very well. We can see that the recent 5th wave target zone was hit in Sept 2018, resulting in a new all-time high.

For the remainder of 2018 the S&P500 had a deep correction, pushing through the previous bullish trend’s Wave 4 pivot. It is usual for a trend to correct after completing a 5 wave Elliott wave sequence.

S&P500 correcting in wave 4 pullback?

2019 price action and Elliott wave trends

For the first part of 2019, there has been impressive to move the market to a new high. However, SP500 didn’t have enough momentum to really break though this resistance zone around 2940.

Looking at the daily chart below we can see the Elliott Wave 3 was formed with these new highs and for the last 6 trading days we have been on a pull back. The Wave 4 probability zones are printed in Green, Amber and Red and we can see that recent support levels from the Wave 3 move, coincide with two of the zones.

We are looking for the S&P500 to pull back and test the first support level of 2800, within our green probability pullback zone. Then, we can measure the behaviour of this wave 4 with the Elliott Wave Oscillator and False breakout Stochastic indicators at the foot of the chart below. We are looking for a cross-over in the over-sold zone for Stochastics along with a retracement on the Elliott Wave Oscillator if the wave 4 forms in the green zone. If support is formed and the Wave 4 behaviour is as expected, we look for a 5th Wave move to create a new high.

(Understand a little more how the MT4 Elliott Wave Indicator Suite works here)

S&P500 correcting in wave 4 pullback?

you might be interested in…

A guide to S&P 500 VIX Index

S&P 500 Trading Tips

Difference between Dow, Nasdaq, and S&P 500

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES