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.
- -

spx500

The current SPX500 structure indicates that the market has completed an impulse wave a of a cycle degree, which was followed by new bullish zigzag in wave b. Wave b consists of primary sub-waves , , .

Primary wave Ⓐ and Ⓑ look fully completed; a 5-wave impulse and a simple zigzag, respectively. Wave , however, has completed only 4/5ths of the impulse.

With wave (5) wave coming up next, prices can be expected to reach a high of 2939.0. At that level wave b will be at the 61.8% of wave a.

spx500

An alternative scenario is indicative of an incomplete wave (4) though.

It would appear to consist of minor sub-waves A-B-C and being of the standard zigzag pattern.

Thus, in the short term, a decline in wave C near the 2576.0 would be expected. At that level, wave (4) would be at the 61.8% of wave (3).

Then the aforementioned upside would follow in the intermediate wave (5). However, near 2797, where the correction b would be at 50% of the impulse wave a.

Test your strategy on how the SPX500 will ...


--
To keep reading this article, please navigate to: Orbex Forex Trading Blog.