SPX500 has rallied through 4460-80 zone yesterday, carving potential Wave 2 correction. The counter trend correction has also reached fibonacci 0.618 retracement of Wave 1 as highlighted on the 4H chart here. The indice might resume lower soon from current levels.
SPX500 had rallied between 4035 and 4451 subdividing into 5 waves, which is marked as Wave 5 on the above chart. Furthermore, the termination here seems to be at multiple degrees, hence the decline could be much deeper.
The recent wave structure since 4451 high is that of an impulse drop towards 4300-10 levels, followed by a corrective rally through 4460-80. A five wave decline (Wave 1), followed by a three wave correction (Wave 2) respectively.
If the above is correct, SPX500 will resume a Wave 3 decline towards sub 4100 and up to 4000 levels in the next several weeks. Please note that Wave 2 could be still unfolding and might test 4500 mark before termination.
Ideally, 4551 should hold well as bears prepare to resume lower towards 4000 levels, potential Wave 3 termination. Traders might be willing to initiate fresh short positions around 4460-80 zone with risk just above 4551 and potential target below 4000 levels.
Finacademy Technical Team
EURUSD is preparing to continue higher towards 1.1750 level in the next few trading sessions. Bulls are looking poised to remain in control until prices stay above 1.1524 mark. The currency has bounced back from its channel support as shown on the daily chart.
Bitcoin rallied to all-time high around $67000 mark on Thursday before pulling back. The crypto is trading around $63000 at the time of writing and could drop through $52500 mark.
USDJPY seems to have carved a meaningful top around 114.70 mark on Wednesday. The currency has dropped through 114.00 since then and is looking to drag lower below 113.80 in the near term. Bears are poised to remain in control from here.