As expected, the S&P 500 has turned bearish after a 5-wave rally from 1832 up to 1890/1900 resistance zone. Market fell sharply to the downside, clearly in impulsive fashion and filled the gap from a week back. Because of strong bearish momentum current leg is considered as first leg within ongoing weakness. Therefore we will be looking even lower after any corrective retracement back to 1870 that may occur in the next few sessions; ideally from current gap that will become a support.
S&P 500, 4-hr. Elliott Wave Analysis
Crude oil is retracing from 98.80 after strong sell-off a week back. For now we see rally as corrective bounce within larger downtrend. We will stick to a bearish case as long as market trades beneath 102.20 (short-term invalidation level), as we cannot ignore previous three wave rise and broken channel.
Crude Oil, 4-hr Elliott Wave Analysis