SPX500 has raised through 4383 highs today, up almost 150 points from the lows around 4234 print early this week. The indice might be testing its previous swing highs around 4394.6 levels, before turning lower again. The structure remains bearish until prices stay below 4394.6.
SPX500 had earlier dropped through 4234 lows before bouncing back higher again. We have labelled the recent wave structure as probable Wave 1 and 2 around 4234 and 4383 levels respectively. If the above is correct, SPX500 would stay below 4394.6 and resume lower as Wave 3 unfolds.
Potential downside targets are pointing towards 4135 and 4030 levels at least, before SPX500 finds any support for a pullback. The indice might be unfold Wave 3 lower towards 3700 levels if the above structure holds well.
Alternately, if SPX500 bulls manage to push through 4394.6 highs, it could change the structure for short term. Having said that, upside potential remains very limited and it is just a matter of time before bears are back in control.
Immediate support is seen through 4351 levels and a break below that could be seen as the first sign of a bearish resumption. Most traders might hold short positions with risk above 4400 mark.
Finacademy Technical Team
EURUSD might have carved a potential bottom around 1.1690-1.1700 over the last week. The currency is trading above 1.1720 at the time of writing as bulls prepare to push higher towards 1.2050-1.2100 in the next few weeks.
SPX500 has rallied through 4460-80 zone yesterday, carving potential Wave 2 correction. The counter trend correction has also reached fibonacci 0.618 retracement of Wave 1 as highlighted on the 4H chart here. The indice might resume lower soon from current levels.
USDJPY might be unfolding a combination to terminate Wave (4) towards 10.50 over the next few weeks. A potential ending diagonal could be unfolding from 110.50 mark as bears remain poised to drag below 108.50 in the next sub-wave.