Hello everyone. In today’s article, we will look at the past performance of the 4H Hour Elliott Wave chart of SPDR Consumer Staples ETF ($XLP). The rally from 5.31.2024 low unfolded as 5 waves impulse. So, we expected the pullback to unfold in 3 swings and find buyers again. We will explain the structure & forecast below:
5 Wave Impulse Structure + ABC correction
$XLP 4H Elliott Wave Chart 10.03.2024:
Here is the 4H Elliott Wave count from 10.03.2024. The 5 wave impulsive cycle from 5.31.2024 ended on 9.16.2024 at blue (3) and started a pullback. We expected the pullback to find buyers at the blue box area at 81.33 – 80.00 in 3 swings.
$XLP 4H Elliott Wave Chart 10.15.2024:
Here is the latest 4H update from 10.15.2024, showing the bounce taking place as expected. The cycle from the peak at blue (3) has ended and the ETF has reacted higher from the blue box area allowing longs to get risk free. The ETF is expected to remain supported with a target area towards $85 – 87 area before another pullback can happen. Alternatively, the bounce can fail and continue lower in a 7 swings correction so chasing now can be risky. A break of blue (3) high will confirm the next leg higher and negate the possibility of a double correction.
Source: https://elliottwave-forecast.com/stock-market/949454/