The structure of the SPX500 index shows a 5-wave impulse cycle.
Impulse wave V of a cycle degree is currently under development. It consists of primary sub-waves ①-②-③-④-⑤.
Horizontal correction wave ④, which is currently being formed is a double three (W)-(X)-(Y). Waves (W) and (X) ended, whereas wave (Y) is under development.
In the near future, we could see a decline in wave (Y) to the 3154.78 area. At that level, primary correction ④ will be at 38.2% of impulse ③.
After that, we could expect the market to rise in primary wave ⑤.
An alternative scenario shows primary correction wave ④ completed a simple bearish zigzag.
We then saw the formation of bullish impulse wave ⑤.
In the short term, we could see the index rise in the intermediate wave (5) near 3908.59.
At that level, wave ⑤ will be at 61.8% of primary impulse ③.