SP 500: Pullback has started

Gregor Horvat Wavetraders

We saw SP500 breaking to new ATH earlier this week, but we are wondering if maybe a new higher-degree pause will come in play now since we can count five waves up from April low. Also, we see that the fifth wave had an ending diagonal up into 5700, that spoted at the Fibonacci projection zone, so there can certainly be a new short-term retracement, as price breaks out of the wedge. This can cause a drop for a retracement back to 5590 in the near-term.

Also trading through summer can be very tricky, and both-sided, so definitely be aware of some slowdown, possibly even just temporary for another fourth wave retracement as shown on 4h count #2. So in either case, 5590 or possibly even 5507 can be important support that will be retested still.

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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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