SPX500 might have carved a meaningful top around 4744 on November 22. The indice had reversed sharply lower toward 4656 thereafter, carving a lower degree wave I (not labelled today). The subsequent rally toward 4720 was corrective and could be lower degree wave ii.
If the above short term counts are correct, SPX500 might be heading lower toward 4505 at least as wave iii unfolds. The indice is already testing 4655 potential support zone and a break lower will accelerate the drop through 4500 mark.
Please note that 4500 zone is the convergence point of the recent support trend line and fibonacci 0.618 retracement of the rally between 4270 and 4744 levels respectively. SPX500 might find support there and produce a bullish reversal.
Alternatively, a break below the trend line support will open the door to slip toward 4270, the previous Wave 4 termination. In that case, SPX500 might be preparing for a major bearish reversal going forward. For now, we turn our focus toward 4500 zone.
SPX500 must hold prices below 4744 mark to keep the above bearish structure intact. Traders might be willing to initiate fresh short positions with risk above 4750 levels.
Finacademy Technical Team
Gold prices dropped through $1773 lows on Thursday before finding support again. The drop from $1793 was in-line with price action of a gartley.
The US dollar index might have carved a lower high around 96.50 mark on Tuesday. The index dropped through 95.80 levels on Wednesday before finding some support.
USDJPY is soon approaching a formidable resistance zone around the 114.40-50 mark. The currency pair has been carving a corrective rally since 112.50 lows.