S&P 500 has been gaining its historical highs recently. Is it time to grow or reverse?

S&P 500 Monthly Chart

On a Monthly chart of S&P 500 we see the strong up trend that could be considered to be the first A wave up (marked with the yellow line up) of the forming three-wave ABC structure. The A up wave started in early 2009 and had a slight correction in 2011 but this sag could not be supposed as a full-bodied B correction in terms of a Monthly chart. However, since last June S&P 500 has been moving in a corrective phase (marked with the yellow line down). Yes, despite the chart’s licking historical highs, Awesome Oscillator (AO) shows us some corrective wave on a Monthly chart. This could be either the B wave down or the b subwave down within the A up.


S&P 500 Weekly Chart

A Weekly chart will allow us to have a detailed look inside the aforementioned correction on a Monthly chart. We could see the Weekly A down (the grey line) and the adequate B up. It seems like the B correction is close to its expiry and is going to give its place to the impulse C wave down. However, we could not be sure in that until the upper AO Indicator gives us its signal.

s&p 500 weekly chart

S&P 500 Daily Chart

The Daily Chart shows us some more information about inner structure of the weekly B. The daily waves are shown with violet lines. We are having ABC finished and the fourth wave down is in progress. This could be either the fourth corrective wave in the violet five-wave ABC and then there will be continuation of the up trend or it may occur the new A wave down of the older chart (for example the A subwave of the Weekly C down).

s&p 500 daily chart



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