It is assumed that for SPX500 we see the formation of a large impulse trend.
At the time of writing, the primary wave ③, which is part of the cycle impulse V, is under development. It is a bullish impulse marked by intermediate sub-waves (1)-(2)-(3)-(4)-(5). This pattern may soon come to the final.
Not so long ago, the price moved in the minor wave 4, then the bulls took the initiative and led the market up in wave 5. It is assumed that wave 5 will end at a maximum of 4824.14. This was marked by the minor wave 3.
After reaching this level, market participants could expect a decrease in the primary fourth correction near 3923.01. At that level, it will be at 38.2% along the Fibonacci lines of primary impulse ③.
Alternatively, the construction of the impulse wave ③ has already been completed. The market peaked at 4817.52, then, most likely, the price pushed off from this level, and the decline began.
Perhaps in the last section of the chart, we see the first half of the intermediate zigzag (A)-(B)-(C), which forms the primary correction ④.
Most likely, the index will fall in correction to the level of 3923.28, since at that level, wave ④ will be at 38.2% of impulse ③. The probability of achieving this coefficient is high.
After reaching this level, the development of the primary fifth wave is likely. This is likely to update the maximum of 4817.52.
Test your strategy on how SPX500 will fare with Orbex - Open your account now.
