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
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.