ES Futures Daily Chart – April 14, 2016
Right now we are trading in the 3rd wave of the 5th bigger wave which according to Elliott Wave channeling method, should top around 2110.00-2120.00 levels. A retracement (4th wave) of this 5th one should hold 2060.00 level or in case of a deeper correction should not break the lower bound of the channel.
Right now the market is in a major Pivotal area, represented by the dashed line in the above chart, which supports the idea of why the bull run should slow down in the days to follow. In case this Pivot is broken aggressively (indicating euphoria), we might expect a completion of the 5th wave during the next week to be followed by an immediate pullback or consolidation at the highs.
SPX 1H Chart – April 14, 2016
In the above SPX chart, the 0.618 Fibonacci level meets the upper bound of the channel (previous chart) exactly in the level where 5th wave is expected to top. Another detail that should get attention is the crossing of Fibonacci Time Zones with the Speed Resistance, indicating that a trend reversal should be expected around 20th of April.