S&P 500 Hunt Volatility Funnel & Elliott Wave Count

The past month and a half has seen a massive compression of volatility in a series of higher lows and lower highs. Once H3 (1221) or L3 (1187) is broken, a significant movement in the direction of the break should be unleashed as large numbers of stops are triggered.

Here is the my interpretation of the Elliott Wave Count of the same time span. It implies that we are almost in Wave 3 Blue of 5 Green. Given how the equity indexes have been driving the currency markets lately, this implies further appreciation of the dollar. When the next move occurs, make sure you are on the right side of the trend.