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
USDJPY could be progressing into a counter trend rally toward 114.30-50 zone in the next few trading sessions.
Gold dropped to $1770 mark on Tuesday before finding some support. The yellow metal is still testing its intermediate trend line support connecting $1721 and $1758 levels respectively.
The US dollar index carves a meaningful top around 96.88 mark over the last week. The index reversed sharply on Friday confirming a bearish Evening Star candlestick pattern on the daily chart.