The current chart of the SPX500 index shows the development of a major impulse trend.
It is assumed that the primary wave ③, which is part of the cycle impulse V, is currently under development. It is a bullish impulse with intermediate sub-waves (1)-(2)-(3)-(4)-(5).
In the near future, the price could continue to rise to 4824.14 in the minor impulse 3. At that level, the entire primary wave ③ could end.
After the completion of the bullish impulse, prices could lower in the correction of the primary degree near 3633.20. At that level, correction will be at 50% of previous impulse.
According to the alternative, the formation of the impulse wave ③ is fully completed. Then the price pushed off from the level of 4811.44 and the decline began.
We then saw an intermediate zigzag (A)-(B)-(C), which forms the primary correction ④.
Most likely, in the near future the index will fall in correction to 3359.83. At that level, wave ④ will be at 61.8% of impulse ③. The probability of achieving this coefficient is high. Then the price is expected to rise in the primary fifth wave.
Article by Orbex
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