I have shown the recent waves of our corrective cycle on SPX, this is the most possible wave structure i can think if right now.
The recent downward move is a 5 wave structure (wave 2 consisting of simple zig-zag and wave 4 consist of complex triangular waves ABCDE), which indicates that it is wave A of a bigger wave ABC. The 5 impulsive waves consist of expanding diagonal waves in which each next wave is bigger than the previous, diagonal waves usually retrace as much as wave 2 of the impulse and are usually consist of swift retracement. This swift retracement will look like a bounce, and just when people start to FOMO, we shall see wave B downward.
The recent downward move is a 5 wave structure (wave 2 consisting of simple zig-zag and wave 4 consist of complex triangular waves ABCDE), which indicates that it is wave A of a bigger wave ABC. The 5 impulsive waves consist of expanding diagonal waves in which each next wave is bigger than the previous, diagonal waves usually retrace as much as wave 2 of the impulse and are usually consist of swift retracement. This swift retracement will look like a bounce, and just when people start to FOMO, we shall see wave B downward.
Note
On LTF, it seems like the wave 5 consist of Converging Diagonals. We can still be in our last downward wave 5 which can go as low as 3920$ - 3925$ in my opinion. A couple of days price might stay sideways completing its sub-waves followed by swift move upward.Note
A little bit correction on the wave count of Converging diagonal waves mentioned in above picture.Currently expecting 3.9k - 3.96k $ to be the local low
Note
So far so good, sold both times at local peaks in the recent wicks.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.