Current Elliott Waves - Updated to provide more info about option 2:
This week, SPX worked on red wave 3 and as of today, there are 2 options:
1. my favorite one is that SPX did red wave 3 this week, and red wave 4 will happen early next week. If it does, it will drop 40-50 points and then will start red wave 5 up. Red wave 5 is supposed to last about 2 weeks, and add another maybe 50 points to SPX, before it will correct maybe 80 points or so (future blue wave 4). See first chart below.
2. the shallow 30 points drop at the beginning of the week was red wave 4, and now the market is doing red wave 5 (only the start of it so far). My indicators support this option, but it implies that the subwave 5 of red wave 3 was truncated, and that's something that's quite rare imo, so i have my doubts. See second chart below for this option. If this option plays out, subwaves 1, 2 and 3 of red wave 5 are done, so a small correction (subwave 4) and a new high will finish this wave, probably in few days. Then it will correct maybe 80 points or so (future blue wave 4).
To find out live which ones plays out, watch RSI(4) on hourly SPX. As you can see, there is a divergence between RSI and price (red line on RSI(4)), and if subwave 5 reaches an even lower RSI, then probably option 2 is in play.
Do not use Elliott waves for short term trading - they work properly for longer term trading (i.e. 2-3 months is the best)