July 30, 2021
SPX500 might be very close to carving a meaningful top soon but 4431 could be an interim top for now. The indice is expected to pullback at least through 4300 mark but support is expected as it is the fibonacci 0.618 retracement of the recent upswing.
SPX500 has been in a religious up trend since printing 2200 lows in March 2020. The indice had terminated Wave 4 around 4035 levels early March 2021 and since then has been unfolding into Wave 5 rally, which might soon terminate.
In the near term, support can be expected around 4300/10 zone and bulls might be inclined to take back control thereafter. But if prices continue drifting lower and break below 4235 mark, it could be seen as the first indication of a potential trend reversal.
Until that happens, traders might be watchful to initiate aggressive short positions; instead look to see if prices are well supported around 4300 levels. The recent price action suggests of a potential expanded flat being carved as lower degree wave 4.
If correct, SPX500 might continue drifting lower towards 4300/10 before finding support again. We shall review the situation again before deciding further course of action.
Finacademy Technical Team
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