SPX500 carved a meaningful top around 4551

Written by Finacademy.io

September 10, 2021

Technical Analysis:

SPX500 has pulled back below 4500 after printing yet another all-time high at 4551 over the past week. The drop seems to be corrective at the moment but a break below 4470 and 4350 would confirm that the trend has reversed.

SPX500 has been rallying since 4035 lows in May 2021. The index has carved 5 waves higher and terminated above its fibonacci 0.618 extension at 4551 mark over the last week. If correct, the index will soon be in control of bears.

SPX500 is having strong support around 4350, which is also close to the trend line support passing through 4035 lows since May. A break below the trend line support and 4350 will add to the confirmation that a meaningful top is in place.

Alternatively, a push above 4551 will open the door to rest 4580 and higher, before finding resistance again. Having said that, the upside potential remains limited for SPX500 hence it is good to wait for a break below 4350 to confirm a bearish reversal.

Most traders might be preparing for a bearish reversal on a break below 4350 support, against 4551 highs and potential target below 4035 at least.

Prepared by

Finacademy Technical Team

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