AI
Current Elliott Waves - As expected, spx headed lower but it did not drop below the August low. Blue wave 2 was either completed on Aug. 15, and since then spx did red waves 1 and 2 (red wave 2 might not be done) or spx might get a new low next week below 2820 to complete blue wave 2.
Regardless, it seems that early next week the market will head down again to either complete blue wave 2 or red wave 2, depending on how low it goes (below 2820 or above 2825, respectively). So, we have to see how low it goes before counting the waves and deciding if blue wave 2 was completed on Aug. 15. I expect the drop to start on Monday and last few good days. The reason why I am expecting a drop early next week is becuse RSI(4) is topping - of course it might still put in a green Monday or the early part of it to trap bulls, but it will have to make a correction sooner or later to reset the RSI(4).
Regardless, it seems that early next week the market will head down again to either complete blue wave 2 or red wave 2, depending on how low it goes (below 2820 or above 2825, respectively). So, we have to see how low it goes before counting the waves and deciding if blue wave 2 was completed on Aug. 15. I expect the drop to start on Monday and last few good days. The reason why I am expecting a drop early next week is becuse RSI(4) is topping - of course it might still put in a green Monday or the early part of it to trap bulls, but it will have to make a correction sooner or later to reset the RSI(4).
