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.

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
EUR/USD
Bullish
Oil - US Crude
Bearish
Wall Street
Bullish
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
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • The US Dollar is now trading lower again. After hitting an intraday low around 90.15, the $DXY rebounded to 90.25 but has turned toward again, falling back below 90.20. $USD https://t.co/xyglMBmakL
  • Indices Update: As of 19:00, these are your best and worst performers based on the London trading schedule: France 40: 0.14% Wall Street: 0.06% US 500: 0.03% Germany 30: 0.02% FTSE 100: -0.00% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/SbFlX1iTdj
  • #Gold is consolidating slightly higher this week, around $1,850, after the precious metal's failed attempt at breaking above the $1,870 level last week. $XAU $GLD https://t.co/MyeWiBSQZR
  • US 10yr yields have notably tightened, falling from 1.10% yesterday to trade around 1.04% today. Yields still remain elevated in 2021 compared to earlier in the pandemic. $GOVT $IEF $USD https://t.co/uT27KDUkhM
  • Hey traders! Get your Tuesday market update from @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/WPk9aapKhs
  • $EURGBP is currently trading around 0.8855, nearing the lows set around 0.8840 last week. A break below this level would mark the pair's lowest level since May. $EUR $GBP https://t.co/QinuctvrVK
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in Germany 30 are at opposite extremes with 70.50%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/B4i5VeBnUE
  • Commodities Update: As of 17:00, these are your best and worst performers based on the London trading schedule: Silver: 0.50% Gold: -0.17% Oil - US Crude: -0.27% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/1n9eel9mPM
  • Forex Update: As of 17:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.49% 🇬🇧GBP: 0.40% 🇦🇺AUD: 0.35% 🇪🇺EUR: 0.10% 🇯🇵JPY: 0.07% 🇨🇭CHF: 0.06% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/or5TUZZUWN
  • The DAX is breaking lower out of a short-term topping sequence, the pattern discussed on Thursday as having the potential to at least induce a pullback within the context of a larger uptrend. Get your #DAX market update from @PaulRobinsonFX here:https://t.co/nFPT9a7KGi https://t.co/AJFUWoj2uQ
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