SPX: Near term resistance
Updated
Hi everyone,
It appears a 5 wave pattern appears to be taking place for the SPX.
I would expect resistance around 4020 (50% Wave 1-3 extension), before an ABC correction takes place afterwards (indicative levels only shown on the chart).
Additionally, this is near the key 4k psychological level, and the MACD appears to show divergence.
If this target is reached, I will wait for a clear indication (i.e. break in market structure) before considering any trade.
One key point to note is that fundamentals including additional stimulus may impact technicals, so do keep this in mind.
Good luck!
It appears a 5 wave pattern appears to be taking place for the SPX.
I would expect resistance around 4020 (50% Wave 1-3 extension), before an ABC correction takes place afterwards (indicative levels only shown on the chart).
Additionally, this is near the key 4k psychological level, and the MACD appears to show divergence.
If this target is reached, I will wait for a clear indication (i.e. break in market structure) before considering any trade.
One key point to note is that fundamentals including additional stimulus may impact technicals, so do keep this in mind.
Good luck!
Note
Just to share an update. As the wave 5 was less extended than expected, I expect the A wave correction to reach a lower level than charted. My projection is the first Fibonacci level (11%, at 3730) based on the February ATH and March crash low, and near the Wave 4 support.
Note
As the wave 5 has now completed the 3730 target reached, I now expect the index to rise again over the next few weeks.The first target is the 50% retracement near 3840, and once this is reached to monitor the waves to check if potential new all time highs can be formed.
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