SPX500 has rallied through 4490 mark at the time of writing, as expected and discussed earlier. The indice has carved a potential expanded flat corrective wave a-b-c, as labelled on the 4H chart here. There is still some room left towards 4500 mark but upside remains limited from here.
SPX500 had dropped from 4551 all-time high toward 4300 mark subdividing into five waves, marked as primary Wave 1 on the chart here. As a general guideline, an impulse drop is usually followed by a corrective rally.
SPX500 seems to have carved an expanded flat corrective structure (3-3-5) between 4300 and 4490-4500 levels. Also note that wave ‘b’ carved a new extreme around 4270, a typical guideline for expanded flat corrective structure.
Furthermore, SPX500 has rallied through the fibonacci 0.786 retracement of Wave 1 and high potential remains for a bearish reversal from here. If the above unfolds accordingly, the indice could be soon underway toward 4150 as Wave 3 progresses.
Alternatively, SPX500 might be carving Wave 2 an expanding triangle structure. If correct, the indice might drift sideways for a little longer before breaking below 4270 mark. Either way, the indice remains sell on rallies from here.
The Profinacademy.com Team
Gold prices have reversed sharply toward $1780 levels in the past few trading sessions losing over 100 points. Bulls have managed to hold prices above a critical support around $1758 mark until now.
The US dollar index rallied through 96.88 levels on Wednesday, a bit higher than the expected 96.65 mark. The index has now tested fibonacci 0.50 retracement of the larger degree Wave (1) as labelled on the daily chart here.
EURUSD has carved yet another shallow low on Tuesday around 1.1226 before finding mild bids. The downside remains limited from here and the single currency pair might test 1.1200-10 mark before resuming higher again.