August 31, 2021
SPX500 continues to defy resistance as the indices prints yet another high around 4537 on Monday. The indice is trading around 4530 as of writing and need to break below 4470 at least to confirm a meaningful top in place.
SPX500 has been unfolding into an impulse wave since 4035 lows in March. The indice might have terminated its 5th wave just below 5400 as marked on the chart here. If correct, the benchmark index could produce a dramatic reversal in the coming sessions.
Alternately, a push through 4537, could open doors towards 4585 mark, before Wave 5 terminates. Either way, upside looks to be limited from here and it is just a matter of time before bears are back in control.
It is advised not to initiate fresh long positions here, since it could prove to be a bull trap as SPX500 prepares to turn lower. Also note that the indice might be close to terminating Wave 5 at multiple degrees.
If the above is correct, a sharp bearish reversing might be possible dragging prices lower towards at least 4035 mark, going forward. Traders might wait for a break below $4470 at least to turn bearish again.
The Profinacademy.com Team
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