S&P500 and German Dax Elliott Wave Analysis – More Upside After A Correction

S&P500 is down out of an ending diagonal (wedge) pattern in the 4-hour chart, which means that wave five of three can be completed and higher degree wave 4 correction already underway that represents three-wave A)-B)-C) corrective movement. Well, currently we are tracking wave B) which can be even bigger or more complex one, so we will have to be aware of another wave C) decline later down to 4200-4000 support zone. Resistance is 4500 – 4550.

S&P500 Elliott Wave Analysis Chart

DAX is coming sharply higher, probably due to positive sentiment as DAX30 is now becoming a DAX40 as 10 new companies were added to the list. So far, we can see a nice and sharp reversal higher which is looking very impulsive so we have to respect the strong bullish price action, especially if we consider that drop from August high was in three waves. We see that as a contra-trend move that represents wave four of a higher degree so be aware of more upside, especially after set-back into wave 2)/B).

German DAX Elliott Wave Analysis Chart

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