Elliott Wave Analysis of S&P-500 and EUR/USD by Sid from ElliottWavePredictions.com. Click on the charts twice to enlarge.
My wave counts for the S&P-500 and the EUR/USD currency pair have reached a very important juncture, because either my main S&P count is correct, with a wave 5 burgundy rally due to commence, AND my alternate count for the Euro (shown above) will turn out correct by also rallying in a wave 5 (pink), OR, my main wave count for the Euro will be correct, which calls for continued substantial weakness, while the stock market finds a way to separate from the dollar, and muster a wave 5 rally, in keeping with my main wave count there. Based on a number of factors shown in numerous posts leading up to this one, I think the most likely scenario is that both equities and the Euro will rally together starting quite soon, as depicted in the above charts. If that does occur, as always, the internal subdivisions of the rally off the bottom will be of paramount importance in determining what is most likely to occur moving forward.
Or, my main count for the Euro and my alternate count for equities will be correct, in keeping with the long standing expectation of the more (in)famous Elliotticians, where both equities and the Euro move NOW into a phase of mega-aggressive, “wave 3 of 3″ type selling. If there’s going to be one last upward push in equities and/or the Euro, there appears to be only a day or two left to allow for it. We’ve arrived at an important crossroads . .
My main count for the Euro will only be ultimately and finally confirmed upon price movement below 1.38607, although movement below 1.39682 would be an important earlier “tell”. Final confirmation that a top is in on the SPX continues to be with movement below 1128.75.