SPX500 bears might be back in control after printing 4502 on Wednesday. The indice has dropped through 4470 and high probability remains for a meaningful top in place around the 4500 handle. A break below 4420 will confirm that a top is in place.
SPX500 wave counts since 4035 lows in March suggest a 5 wave rally to be complete around 4502. If correct, the indice would drop below 4350 from here, which is a strong confirmation of a trend reversal in place.
Alternately, if SPX500 bulls are back around 4450/60 zone, which is close to fibonacci 0.382 retracement of the recent upswing between 4350 and 4502, it could imply yet another rally above 4502 to complete the structure.
It would be interesting to see how the indice reacts around 4450/60 mark. Aggressive traders might want to still wait before initiating fresh short positions, and allow a break below 4420. It would eliminate the possibility of a potential lower degree wave iv termination.
Having said that, a continued drop towards 4350 and 4235 would confirm that the trend has reversed lower and bears are back in control. Please note that this could be a major trend reversal, at a higher degree.
Finacademy Technical Team
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.
Gold is progressing toward $1835 at least as wave (c) unfolds in the next few weeks. The yellow metal needs to stay above $1721 intermediate support for the above bullish structure to remain intact. Intraday support for Gold is seen around $1745-50 levels.