Markets are moving sideways in very tight ranges for the last 12 hours. The USD remains in bullish mode against the most of the currencies while the S&P futures are trading sideways, most likely trapped in a triangle within larger downtrend. At the same time we are looking at two different counts on the German DAX where both scenarios suggests another leg to the lows.
The S&P found a support yesterday but turned down from 1793 so basically this market is trading in range which we think it represents a fourth wave within ongoing trend. We are looking at the triangle count with wave e yet to come before downtrend resumes. Critical invalidation level is at wave a highs, at 1801.
S&P 500 (Mar 2014) 1h Elliott Wave Analysis
As we mentioned above on DAX we are tracking two counts where both are pointing for the same direction as the S&P, to a new low. On the first count we are already tracking wave B, but a complex flat correction where sub-wave (b) may stop around 9200.
DAX (Mar 2014) 1h Elliott Wave count #1
The second count is slightly different but same idea; new low before going up.
DAX (Mar 2014) 1h Elliott Wave count #2
Written by www.ew-forecast.com
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