S&P 500: Price at 38.2% Fib support

Gregor Horvat Wavetraders

As expected, the SP500 turned down for a deeper correction back to 5k area, as drop on all major indexes and some big cap names were pretty aggressive. However, after that huge VIX spike that signals for the support, a higher degree wave IV correction can be completed and wave V of (V) underway. The reason is a broken trendline resistance and extended third wave rise, so ideally this sharp retracement is wave (4) then, as part of an uptrend. Nice support can be at 5500, at the 38.2% Fib., which at the same time can be the right shoulder of HS bottom.

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Author

Gregor Horvat

Wavetraders

Experience Grega is based in Slovenia and has been in the Forex market since 2003.

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