SPX500 has rallied through 4450 levels in-line with expectations. The indice has still got room to push through 4500 mark to complete the proposed expanded flat for corrective Wave 2, before turning lower again. Bears remain poised to be back in control soon.
SPX500 has been in a corrective phase since 4300 lows. The structure might be unfolding as a-b-c expended flat as labelled on the 4H chart here. If the above is correct, wave c could be unfolding towards 4500 mark before terminating.
If prices reverse lower from here, it could still be considered as a running flat Wave 2 correction. Either way, SPX500 is looking extremely bearish either from here or from 5500 mark. Bottom line for the above structure to hold is that prices should stay below 4551, going forward.
SPX500 had earlier dropped from 4551 through 4300 levels, subdividing into five waves. The impulse drop has been marked as Wave 1 on the chart here. Since then, a corrective Wave 2 is unfolding and is looking to terminate around 4450-4500 zone.
Traders might be inclined to initiate fresh short positions around 4450-4500 zone with risk above 4551 and potential target below 4150 as Wave 3 progresses.
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.