This article was first published on Orbex Forex Trading Blog.
This content is synced from the rightful owners. Copyright on text and images belong to the original source.
The structure of the SPX500 index shows a 5-wave impulse cycle.
Impulse wave V of a cycle degree is currently under development. It consists of primary sub-waves ①-②-③-④-⑤.
Horizontal correction wave ④, which is currently being formed is a double three (W)-(X)-(Y). Waves (W) and (X) ended, whereas wave (Y) is under development.
In the near future, we could see a decline in wave (Y) to the 3154.78 area. At that level, primary correction ④ will be at 38.2% of impulse ③.
After that, we could expect the market to rise in primary wave ⑤.
An alternative scenario shows primary correction wave ④ completed a simple bearish zigzag.
We then saw the formation of bullish impulse wave ⑤.
In the short term, we could see the index rise in the intermediate wave (5) near 3908.59.
At that level, wave ⑤ will be at 61.8% of primary impulse ③.
To keep reading this article, please navigate to: Orbex Forex Trading Blog.