S&P500: Elliott Wave comment at 22nd of August

S&P500 bear market rally has probably finished at 1305, with an intraday maximum to 1310 where we had a 50% retracement of the entire bearish movement. Now, we are probably inside a first stage of a wide third wave. Support at 1266 is strong, but it should be broken during these days. Eventually, a rally above 1310-1320 will lead the index to its next target at 1355.

For italian S&P/MIB (see chart), target for this bear market could be 27.000, 26.400 and eventually, at the breaking of 26.400, even more down. We are probably still inside a final 5th wave. From a technical point of view, our index has confirmed the break of its Long Dynamic Stop level at 28.077. Our custom MACD has crossed down its signal line and this could be a bearish signal that will last for some weeks.

For Elliott Wave counting, further details, targets, setup dates and technical charts, please refer to my newly updated S&P500 and S&P/MIB Weekly Reports.

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