SPX500 futures remained shy by one point to print yet another all-tie high on Monday. The indice rallied up to 4,550 mark before pulling back. This could be seen as potential sign of exhaustion and a break below 4,520 will confirm a meaningful top in place.
SPX500 has carved another impulse wave since 4,035 lows registered in May. Wave ii was extended and wave iv might have terminated around 4,235 mark. Immediate support is seen at 4,350 and a break lower will also confirm a potential trend reversal.
Alternatively, a push above 4,551, could further open door to test 4,580-85 potential resistance before reversing lower again. The indice has note produced any bearish reversal signal except a strong bearish divergence on the RSI on multiple timeframes.
It remains anybody’s guess to confirm a bearish reversal timing but upside, if any, remains limited going forward. Traders are advised to refrain from initiating long positions at this price and avoid getting into a bull trap.
Most traders might be sitting on the side-lines waiting for a break below 4,520 and subsequently below 4,350 to confirm a bearish reversal ahead. Short positions could be initiated thereafter.
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.