Updated Elliott Wave Analysis for the S&P 500

For those that follow Elliott Wave Theory the S&P 500 is now exhibiting the final 5th Wave down of a longer term pattern that began with the October 2007 high.   By definition the length of Wave 1 can equal the length of Wave 5.  Wave 1 had a length of 319 points so if you subtract that from the peak of Wave 4 which was 944 that yields a potential bottom for Wave 5 around 625.

Meanwhile if we look at a longer term chart of the S&P 500 also notice the 61.8% Retracement Level calculated from the 1974 low to the Octboer 2007 high is at 640.   Also the longer term trend line connecting the 1974 low through the 1982 low also comes into play in the 625 to 640 area.   Thus there appears to be a major support area in the 625-640 range for the S&P 500 so this would be a good spot for the final 5th Wave to complete at.  

If interested in receiving our Free Weekly Newsletter by email you can sign up
at http://www.amateur-investor.net/Newsletter.htm

Bob
Amateur-Investor.Net