The U.S. S&P 500 Index, in its 2-hourly chart, shows the progress in a consolidation structure as a wave ((ii)) of Minute degree labeled in black.
The internal sequence of the second wave of the upward cycle that began last March 22nd looks like an incomplete flat pattern. In particular, the flat pattern shows the advancement in the wave (c) of the Minuette degree labeled in blue.
At the same time, we observe that the internal structure of the wave (c) remains in the bearish side while its short-term trendline remains intact. However, the big picture reveals the possibility of a new ascent that may correspond to a wave ((iii)) of Minute degree in black.
A bullish position will activate if the price breaks out the descending trendline and closes above 2,529.3 pts. Our conservative scenario foresees a potential first target at 2,676.3 pts. If the bullishness of traders increases its upward momentum, the S&P 500 could advance to 2,816.7 pts, and even rise until 2,973.6 pts.
The level that invalidates our bullish scenario locates at 2,360.6 pts.
Trading Plan Summary
Entry Level: 2,529.3 pts.
Protective Stop: 2,360.6 pts.
1st Profit Target: 2,676.3 pts.
2nd Profit Target: 2,816.7 pts.
3rd Profit Target: 2,973.6 pts.
Risk Warning: CFD and Spot Forex trading both come with a high degree of risk. You must be prepared to sustain a total loss of any funds deposited with us, as well as any additional losses, charges, or other costs we incur in recovering any payment from you. Given the possibility of losing more than your entire investment, speculation in certain investments should only be conducted with risk capital funds that if lost will not significantly affect your personal or institution’s financial well-being. Before deciding to trade the products offered by us, you should carefully consider your objectives, financial situation, needs and level of experience. You should also be aware of all the risks associated with trading on margin.
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