Forex Trading Library

SPX500 5-wave Upside Part of Correction

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The current SPX500 structure shows a completed impulse wave a. The cycle degree pattern is followed by a zigzag in wave b. Wave b consists of primary sub-waves Ⓐ, Ⓑ, Ⓒ.

At the time of writing, only the primary waves Ⓐ and Ⓑ are complete. We can expect wave Ⓒ to take a 5-wave impulse formation.

In the short term, we expect prices to correct in intermediate wave (4). The bearish pattern is a simple A-B-C zigzag, where wave C in under development.

The target for wave C is the 2753 level, where minor wave A and C will be equal in length.


However, an alternative scenario suggests that the pair could correct deeper into wave (4).

In this case, we can expect a decline in C to reach near 2632 lows.

At that level, wave C will be at the 161.8% extension of wave A.

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