Did Last Week's Decline Threaten the Path to 7120 for the S&P 500? Here's What the Elliott Wave Shows

Core Insights - The analysis indicates that the market has experienced 73 identified waves since the low on April 7, suggesting a need for continuous re-evaluation of market trends due to potential miscounting of waves [1] - The projected completion of various waves aligns closely with actual market movements, demonstrating a high accuracy rate of +/-2% for the identified targets [2][3] - The current market trajectory suggests that if the SPX index remains above 6631, a target of approximately 7120 for Wave-5 is anticipated, while a drop below 6720 could indicate a potential decline to around 6575 [4] Wave Analysis - The analysis of the Elliott Wave pattern since early September shows that the index has tracked closely with projections, including a peak at 6890 for W-3, which is within the expected range [2][3] - The last week's closing low at 6720 corresponds well with earlier projections for Wave-4, reinforcing the reliability of the wave analysis [3] - The potential for complex patterns in 4th waves suggests that the current wave structure may not be complete, indicating further monitoring is necessary [3] Market Projections - The expectation for Wave-5 to reach approximately 7120 hinges on the SPX maintaining a position above 6631, while a close below 6720 would signal caution for bullish positions [4] - The analysis emphasizes the importance of skepticism and continuous evaluation in market predictions, aligning with scientific principles of inquiry [5]