SPX500 is trading close to its resistance zone around 4680-4720 at the time of writing. The indice is close to terminating its fifth wave at multiple degrees. If correct, a sharp reversal could unfold dragging prices lower through 4553.
SPX500 has rallied from 4296 lows registered on October 1, through 4685.4 highs registered on November 4. The above rally can be subdivided into five waves, carving an impulse from 4296, which is potential Wave 4 intermediate.
SPX500 has either terminated its Wave v of 5 of (5) around 4685.4 or is close to termination soon. The potential for further upside remains limited from here offering a great risk-reward ratio. A break below the short term trend line will be first indication of a bearish reversal.
SPX500 is facing resistance close to 4700 mark, while immediate price support is seen at 4553 levels respectively. A break below 4553 will confirm a trend reversal and the indice will be good to sell on rallies thereafter.
Traders might be preparing to initiate aggressive short positions on a break below the trend line and subsequently below 4553. Risk remains just above the 4700 levels while potential target is 4300 mark in the near term.
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.