SPX500 Hits All-Time Highs At 3588 Mark
03 September 2020
SPX500 clears resistance yet again and prints fresh highs around 3588 (Spot) yesterday. The indice has closed at 3580 and it would be interesting to see how bears react around the 3600 handle. Whether a top is in place could be anybody’s guess but it close be closer than anticipated.
SPX500 probable wave counts are as follows: The indice had dropped to 2200 levels earlier, which could be marked as a higher degree Wave ((4)) termination. Since then, the indice has managed to rally towards 3588, sub-dividing into 5 waves.
SPX500 might have terminated its larger degree Wave ((5)) around 3588 or could be close to terminating. If the above counts hold well, we should witness a sharp bearish reversal back towards 2200 lows print in March 2020.
Immediate support is seen towards 3340 mark while resistance is around 3600 handle. A break below 3340 would confirm that SPX500 has finally carved a top and that bears are back on control. Also note that the indice should drop all the way towards 2200 rather than producing a corrective drop.
Traders might want to remain flat for now and wait until SPX500 breaks below 3340 support. They might be inclined to sell on rallies thereafter with a protective stop above respective swing highs.
Prepared by
Technical Analysis Team
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