SPDR S&P 500 ETF (SPY) shows an incomplete sequence from June 3, 2019 low with a 100% extension target towards 306.3 – 313.2. In the chart below, we took the more aggressive view of the rally. We label the pullback to 273.09 on June 3 as wave ((2)). Wave ((3)) higher is in progress with subdivision as an impulse in lesser degree.
Up from 273.09, wave (1) ended at 302.23 as an impulse. Wave (2) pullback ended at 277.17. Up from there, wave 1 of (3) is expected to complete soon and the ETF should pullback in wave 2 to correct cycle from August 6, 2019 low in 3, 7, or 11 swing before the rally resumes. As far as pivot at 277.17 low stays intact, expect the ETF to extend higher. Possible target is 100% extension from June 3 low at 306.3 – 313.2. We don’t like selling the ETF.
SPY 4 Hour Elliott Wave Chart