Fibonacci, EW pivot points and OEW
Assuming that the SPX third wave up in this uptrend is complete, and the SPX is now in the fourth wave. One can now make some assessments as to the probable levels of the pull back, and the pattern. Posted below is the daily chart of the SPX, noting the Intermediate wave ii low in mid-July at SPX 1225, and the subsequent market activity since then. Notice the first wave up, (wave i), completed in early Sept; then the second wave, wave ii, a few days later. From that low, the third wave, wave iii, progressed to its recent high last week, and the SPX should now be in the fourth wave, wave iv.
Wave i traversed 90 points, noted in blue on the left side of the wave. Wave ii pulled back for four days, correcting to the previous 4th wave, in the form of a flat, and retracing about 27%, (the inverse of the square root of 13). Wave iii then traversed 98 points, noted again in blue, into the recent high last week. Wave iii and wave i were nearly equal, wave iii traveling just a little bit more. Assuming alternation; in pattern, time and depth of the pullback, one can make the following projections. The pullack of wave iv should be either a zigzag, triangle or complex pattern, not a flat, and take much more than four days to complete.
If wave iv pulls back to about the 1357 EW pivot, it could represent a 35.4% retracement, (the inverse of the square root of 8), and at a previous 4th wave of lesser degree.
If wave iv pulls back to about the 1344 EW pivot, it could represent a 57.7% retracement, (the inverse of the square root of 3), and also at a previous 4th wave of lesser degree.
I noted the two potential support levels on the SPX daily chart in the CHART LINK. And, will observe this chart in the coming days to see how all this works out. Just passing along my observations of this ongoing uptrend. Best to your trading!