SPX500 strong resistance seen around 4450 mark

Written by Financial Educator

August 3, 2021

SPX500 has remained sideways within a tight range between 4385 and 4425 levels since last several trading sessions. The indice is towards its Wave 5 termination since 4035 lows and might be preparing to push through 4450 levels after the sideways triangle consolidation is over.

SPX500 might be only one more high away from carving a major top which would be 5 waves termination at multiple degrees. While SPX500 is expected to print yet another high towards 4450 before terminating its 5th wave, a break below 4375 from here would confirm that a meaningful top is in place.

Furthermore, a break below 4235 would be required to confirm that the larger degree trend has reversed lower. Please note that 4235 is termination of wave iv of one lesser degree, which would confirm that trend has changed.

Also note that yesterday’s low around 4385 could be termed as triangle termination and if correct, SPX500 can stage its final thrust rally towards 4450 levels going forward. We shall review the price action again once 4450 has been hit.

Most traders might stay aside in anticipation of a major top to be in place around 4450 mark. Aggressive traders might be willing to initiate short positions around 4450/30 zone, which could prove strong resistance.

Prepared by

The Profinacademy.com Team

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Financial Educator