Hewison Video: What’s Next for the S&P 500?

Apr 3, 2009: 9:56 AM CST

Adam Hewison released a great video that touches on multiple timeframes, Fibonacci retracements (and current overhead resistance) and even the Elliott Wave Principle – all in a six-minute video!


(clicking the chart opens Adam’s video page)

Entitled “What’s Next for the S&P 500” Hewison begins by addressing current Fibonacci retracement resistance at 840 from the January 2009 highs to the March lows and then shows the current Monthly, Weekly, and Daily “Trade Triangles” and what happens when multiple timeframe trend and signals conflict with each other (which is helpful even to non-members).

Finally, Adam shares his Elliott Wave count using a monthly line chart and does a quick introduction to Elliott Wave (albeit leaving out corrective waves due to time constraints) and then traces out a possible count.  Adam believes we just completed Major Wave 3 in March, which means he’s counting us currently in a Major Wave 4 retracement and is expecting a Major Wave 5 to take us to new lows eventually, but also notes the key level that his count would be invalidated.

Thanks as always to Adam and crew for making these videos available.

Corey Rosenbloom
Afraid to Trade.com

6 Comments

6 Responses to “Hewison Video: What’s Next for the S&P 500?”

  1. J Says:

    Hi, Corey:
    How would you recount the Elliott Wave if it breaks the 943.85 level as Adam mentioned? Thanks.

  2. Bret Says:

    Thanks for posting, his count seems to fit if your theory is we are going lower.

  3. Corey Rosenbloom Says:

    J,

    Adam has other forms of analysis that he didn’t discuss and my guess is the 943 level is related to the breaking above the January high which would be enough to convince him we had put in a bottom.

    However, speaking Elliott, the 943 level has no significance (the way I see it) because if Adam (and the others who think W3 completed in March) because if we indeed are currently in Primary Wave 4, then the level that PW4 can NOT exceed is into Wave 1 territory which would be the March 2008 lows at 1,200.

    If we are in P Wave 4, then I expect an ABC up to perhaps the 1,000 level before heading back down in W 5. Keep in mind that we had a hideous Wave 3 which needs to be retraced a bit.

  4. Corey Rosenbloom Says:

    Bret,

    I try to be open to various wave counts and I think the consensus in the Elliott Community is that we’re going lower – just how low is the subject of debate.

    Keep in mind that Adam is using other forms of analysis in his counts and projections – he tries to keep everything simple and basic so people can learn from his analysis and create their own. I was surprised he’d share Elliott Wave to his members – that’s why I had to post the video link here!

  5. Neil Says:

    Exactly Corey … well said … If this is infact the wave 4 then it can go upto 1200 too but not overlap the march 08 lows …. one more thing that comes to my mind is the 200 day sma is at 1003 as of today … we have not tested that MA since may last year … as in the bigger picture it happens to be the most immportant average of all … and it’s very general fot bear markets to test that average , as to see the strenght of the market. So, as of now, all options are open …. but yes, it’s a very confusing state of the market right now.

  6. Corey Rosenbloom Says:

    Neil,

    Precisely. It would shock a LOT of people across the world if we did get up to the 1,1500 level and then fail to hold it and the Elliott pattern plays out to new lows in Wave 5 down to 600 or 500. I think that would be worse than the initial fall because people would have been so convinced that the bull is back, only to get to new lows. That would be so painful.