The SPX500 stock index is forming a large impulse consisting of sub-waves I-II-III-IV-V. At the time of writing, we are in the final cycle wave V.
The primary third wave is under development and shown by intermediate sub-waves (1)-(2)-(3)-(4)-(5).
In the short term, the market could move lower in the minor wave 4, then the bulls can send the market to 4624.51. At that level, intermediate wave (5) will be at 123.6% of wave (3).
However, there is a possibility that the formation of the primary impulse wave ③ has already come to an end. This means that in the near future the market will collapse within the primary fourth correction.
Thus, if our assumption is confirmed, then we could expect the formation of a bearish zigzag of the intermediate degree to 3325.41. At that level, the primary wave ④ will be at 38.2% of impulse wave ③.
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