Short-term Elliott wave view in S&P 500 Futures (ES_F) suggests cycle from September 24, 2020 low has ended with wave ((3)) at 4549.74. The Index has turned lower in larger degree 7 swing in wave ((4)) to correct cycle from September 24, 2020 low. The first 3 swing WXY is currently in progress within wave (W) as a double three Elliott Wave structure. Down from wave ((3)), wave ((a)) ended at 4485.50 as an impulse. Wave (i) of ((a)) ended at 4519.25 and rally in wave (ii) of ((a)) ended at 4548. Index then resumed lower in wave (iii) of ((a)) towards 4492. Wave (iv) of ((a)) ended at 4514.75, and wave (v) of ((a)) ended at 4485.50.
Correction in wave ((b)) ended at 4529.50 and Index has resumed lower in wave ((c)) towards 4434.50. This completed wave W of (W). Wave X rally is proposed complete at 4479.50. Index has resumed lower in wave Y. While rally fails below 4479.50, and more importantly below 4549.72, expect the Index to extend lower. Potential target lower is 100% – 123.6% Fibonacci extension from wave ((3)) peak towards 4337.1 – 4364.21. Near term, as far as pivot at 4549.2 high remains intact, expect rally to fail in 3, 7, or 11 swing for further downside.
S&P 500 Futures 45 Minutes Elliott Wave Chart