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Special Elliott Wave S&P500 Bulletin   

For April 16, 2009

Anant Acharya

This is our special report for April 16, 2009 from Elliott Wave trader Anant Acharya. Accessing this information implies that you have read and will abide by the terms of the disclaimer below.

If you have questions or feedback, please email Matt Blackman at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

For background on the Elliott Wave patterns we see on the S&P500 please see our April 10 weekly newsletter at http://tradesystemguru.com/content/blogcategory/34/68/#EW

As discussed in our analysis yesterday, the S&P500 rallied into the 840-850 area where it hit resistance and fell back to re-test 840. This retracement appears to signal the end of wave 4 of the Ending Diagonal (ED). However, it is not clear at this stage if Wave 4 of the ED is indeed complete. However, the furious rally in the late hours of the trading session lends credence to Wave 4 having ended.

From here, the S&P500 is expected to rally further into 864-868 levels where it should meets its nemesis. The 864-868 range should mark the final thrust of the ED as well as the completion of the Zigzag (ZZ) which started on March 6. The rally should in all probability be accompanied by high volatility.

Any rally above 880 will signal an ultra-bullish alternative count and if that happens we shall revisit the counts once again.

Figure 1 – Hourly chart of the S&P500 Index from the March 6, 2009 low which formed the origin of the ZigZag Impulse wave. The purple rectangle indicates the highest probability area over the next few days. Chart provided courtesy of Refined Elliott Trader (RET) software produced by Elliottician.com   Data by eSignal.com

Figure 2 – Fifteen-minute chart of the S&P500 Index showing the beginning of the bearish Ending Diagonal (ED) from March 31 currently in Wave 5 and near completion. As discussed in RN Elliott’s first book, The Wave Principle (1938), the market will turn in the same direction as Wave 2 when the pattern has finished. The magenta rectangle shows the short-term high probability target area.  Chart provided courtesy of Refined Elliott Trader (RET) software produced by Elliottician.com    Data by eSignal.com

Suggested Elliott Wave Reading

Forecast Change for Elliott Wave Followers by Matt Blackman (SFO article explores recent EW research findings)

http://sfomag.com/article.aspx?ID=1218

Short Overview of Elliott Wave Principle

http://www.indiacharts.com/EW.htm  

Elite Trader’s Secrets by Richard Swannell (Free eBook)

ftp://ftp.elliottician.com/pub/ebooks/ERP1Results2003.pdf

Elliott Wave Principle by A.J. Frost and Robert Prechter

http://www.elliottwave.com/books/ewp/default.aspx?code=oco 

R.N. Elliott's Masterworks edited by Robert Prechter (Seminal pub including RNE's original books)

http://www.elliottwave.com/books/rn_masterworks/default.aspx?code=oco

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