SPX500 futures might have carved a formidable top on August 06, 2021 around 4441.4 levels and could be ready to turn lower from here. A break below 4400 initial short term support would indicate the beginning of a bearish reversal. Below 4375, bears might stay in control for long.
SPX500 seems to have either completed 5 wave rally from May 13, 2021 lows at 4035 or is very close to terminating around 4450/60 zone. If the above is correct, the indice might have terminated its 5th wave extension at multiple degrees, leading to a much deeper correction.
The indice has been producing a strong bearish divergence 4362 highs registered as lower degree wave iii, labelled on 4H chart here. Initial target could be lower degree wave iv termination seen around 4235 levels from here.
Also note that price action has still not confirmed bearish trend reversal but probabilities remain high from current levels (4435). It would be a better trading strategy to prepare for a turn lower from here rather that commit on the higher side.
Most traders might prepare to initiate fresh short positions on a break below 4375 levels with an initial soft target around 4235 at least.
The Profinacademy.com Team
Bitcoin dropped close to $46000 mark on Monday before finding support again. The crypto is seen to be trading around $46500 mark at the time of writing as bulls remain inclined to be back in control.
The US dollar index spiked through 96.85 mark on Wednesday on the back of the Federal Reserve interest rate decision.
EURUSD is finding support from its consolidation lower range around 1.1260-70 and could resume its rally from here soon.