SPX500: There is a high probability of a re-growth of the index to a maximum of 4825.40
It is assumed that the SPX500 index continues the development of a major impulse trend.
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Most likely, the primary wave ③, which is part of the cycle impulse V, is currently under development. It is a bullish impulse marked by intermediate sub-waves (1)-(2)-(3)-(4)-(5). This pattern may soon be completed. The construction of the last minor sub-wave 5 is expected, its structure is similar to the ending diagonal.
It is likely that the price in the minor wave 5 will continue to rise to the level of 4825.40, which marked the minor impulse 3.
After the completion of the bullish primary impulse, market participants could expect a fall in the correction ④ of the primary degree approximately to 3632.18. At that level, correction will be at 50% of previous impulse.
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In an alternative scenario, the formation of the impulse wave ③ could be fully completed., then the decline began.
In the last section of the chart, we can notice an intermediate zigzag (A)-(B)-(C), which forms the primary correction ④.
Most likely, in the near future the index will fall in correction to 3357.59. At that level, wave ④ will be at 61.8% of impulse ③. The probability of achieving this coefficient is high. Then the price is expected to rise in the primary fifth wave to a maximum of 4811.44, or even higher.
An approximate scheme of possible future movement is shown on the chart.
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.
