The current formation of the SPX500 index hints at a large cycle impulse consisting of sub-waves I-II-III-IV-V.
The chart shows the final part of cycle impulse V. This consists of the primary sub-waves ①-②-③-④-⑤.
In the short term, we could see the market move lower in the corrective wave (4) to 3681.78. At that level, it will be at 61.8% of intermediate impulse wave (3).
Finally, wave (5) can update the previous high of 3952.93.
An alternative scenario shows the development of the bullish intermediate impulse (3), which is part of the primary wave ⑤.
With the completion of a minor impulse 3, a slight decline within the minor correction 4 is likely.
Prices could begin to rise in the final wave 5 towards 4110.65. At that level, wave 5 will be at 76.4% of impulse 3.
After reaching this level, we can expect the development of intermediate wave (4).