It looks like SPX’s minor 4 stopped at 1990. I alerted my I.I. members much early today that there were 5 waves up off that low: minute i, and today’s low was likely minute ii, with subsequent micro 1 and 2 of minute iii underway today Friday 8/29. Today’s strong close certainly suggests that was the right call. Looking ahead, and using fib extension we can find that at SPX 2030 minor 5=1, at SPX 2016 minor 5=0.618x 1 and at SPX 2010, minor 5 = 0.5x 1. All are logical targets. Of note is that the 2.00x extension of minute i, from ii is at 2016. Hence, a nice confluence. I’ve also drawn an elliot wave channel, which nicely connects the minor 2 and 4 low. Ideally minor 5 should top against the upper trendline, which is also equivalent to 2016.
(click to enlarge)
Please remember that this could be a very significant top (see my “two numbers to rule them all” article), and complacency among those that are long is therefore not appropriate IMHO. There is also the possibility of this wave up off the 1905 low only being minor wave 1 of an extension, but I see that for now as less likely and we’ll cross that bridge if and when we get there.