S&P500: Will Friday’s NFP report crash the market?

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We track the S&P 500 (SPX) using the Elliott Wave (EW). The EW allows us to identify the potential paths the market can take based on known patterns, which must adhere to specific price-based rules.

We track the S&P 500 using the Elliott Wave . The EW allows us to identify the potential paths the market can take based on known patterns, which must adhere to specific price-based rules. Since we cannot predict the future, the EW can help us identify the most likely path. Moreover, since financial markets are non-linear, stochastic, and probabilistic, we must, like any other discipline that forecasts complex systems, always “anticipate, monitor, and adjust if necessary.

We should, therefore, expect something similar over the next few months but on a grander scale, as that was a minor-5 wave, and the current rally should be a two-degree larger Major wave. With that in mind, we expect the green W-a/1 and b/2 of the red W-iii/c to be complete and the green W-3/c to ideally SPX5950+/-25 to be underway. The latter may subdivide as shown in the one-degree lower grey W-a, -b, and—c.

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