The S&P 500 high of 2675, created January 18, 2019, has not broken. This means the last uptrend that started near Christmas, could be ending and there is an excellent chance, we start a new "downtrend".
There are two Elliott Wave Patterns for the potential downtrend:
- We could repeat what happened during December 1 through December 24. It was a "wild ride down" from S&P 500 2800 to 2346. That was a total of -454 S&P 500 points, almost straight down.
- My next scenario says we could duplicate the first 5 waves that were processed near September 24 to December 24. That would be more of a zig-zag pattern and could mean another 3 months of down and sideways market action.
There are other scenarios, but I currently like these two best. As the new Elliott Wave Pattern becomes more clear, we can be more accurate as to how the pattern might play out.