SP 500: Impulse is likely to end its pattern at the previous high
The current markup of the SPX500 index shows the continuation of the development of a large impulse consisting of sub-waves I-II-III-IV-V, that is, its final part.
After the cycle correction IV ended in the form of a primary triple zigzag, the price began to climb up, building a cycle fifth wave.
It is assumed that four parts have been completed within the impulse V. In the near future, the market may move up to the maximum of 4815.42, which was marked by the cycle impulse wave III.
According to the alternative markup, the construction of correction IV can continue. There is a high probability that its actionary wave Ⓩ tends to equality with the wave Ⓨ.
In the near future, the price is expected to fall to the price mark of 3335.47, at which the sub-waves Ⓩ and Ⓨ will be equal to each other.
The intermediate wave (C) can take the form of a simple impulse, or an ending diagonal. It's preferable to add this pair on our watchlist.
Author
Jing Ren
Orbex
Jing-Ren has extensive experience in currency and commodities trading. He began his career in metal sales and trading at Societe Generale in London.
