SPX500 seems to be unfolding a corrective wave higher towards 4400 mark in the next few trading sessions. The indice needs to stay above 4270 mark for the above counter trend scenario to remain intact. A break below would test 4235 support before pulling back.
SPX500 had dropped between 4551 and 4300 subdividing into five waves, carving an impulse. It is marked as primary Wave 1 on the chart displayed here. The indice had rallied through 4484 thereafter in a corrective wave, which could be Wave 2 termination.
Alternatively, SPX500 is still unfolding Wave 2 as an expanded flat, which could terminate around 4500 mark going forward. If the alternate count unfolds, prices will stay above 4270 and produce a sharp rally towards 4485-4500 zone.
A push above 4350 will confirm that SPX500 is heading towards 4485-4500 mark to terminate Wave 2 expanded flat since 4300 lows. Bears will remain poised to be back in control thereafter and drag prices towards 4150 and 4000 mark respectively.
Traders might be inclined to sell on rallies towards 4500 zone, against 4551 going forward. An aggressive strategy could be higher against 4250 in the near term.
Prepared by
The Profinacademy.com Team
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