Forex Trading Library

SPX500 Decline in Primary Correction ④

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The internal structure of the SPX500 index suggests the construction of a large impulse trend that consists of primary sub-waves.

At the time of writing, primary wave ③ is under development. It is a bullish impulse marked by intermediate sub-waves (1)-(2)-(3)-(4)-(5). This pattern could soon come to the final.

Not so long ago, the price moved in minor wave 4, then the bulls took the initiative and led the market up in wave 5. Wave 5 will take the form of a minute impulse and could end near the level of 5016.30.

At that level, intermediate wave (5) will be at the 161.8% Fibonacci extension of wave (3).


Alternatively, the construction of the impulse wave ③ has already been completed. The market reached the highest point at 4747.36, then the price pushed off from this level and began to decline.

Perhaps in the last section of the chart, we see the initial part of the intermediate double zigzag (W)-(X)-(Y), which forms the primary correction ④. An approximate scheme of possible future movement in the specified correction is shown in the chart.

Most likely, SPX500 will fall in correction to the level of 3873.88, since at that level, wave 4 will be at 38.2% of impulse 3, and this is a common coefficient in impulses.

After reaching the level of 3873.88, the primary fifth wave is likely to update the maximum of 4747.36.

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