SPX500 Holds Below Interim Resistance At 3230

09 July 2020

SPX500 is looking to resume lower towards 2750 and 2500 levels from here as bears are poised to remain in control from here on. The indice might have completed a lower degree corrective flat around 3180 and could be turning lower again.

Let us have a look at higher degree potential wave counts. The SPX500 had dropped from 3400 on February 24 through 2200 on March 23, 2020 respectively. This is not seen on the hourly view presented here, and is marked as Wave (1).

The subsequent rally between 2200 and 3230 was counter trend and unfolded as a corrective zigzag. The termination has been labelled as Wave (2) of a similar degree. If the above higher degree counts are correct, SPX500 should stay below 3230 and proceed lower as Wave (3) unfolds.

Looking at the potential lower degree wave counts now. The drop between 3230 and 2965 was in 5 waves, hence impulse. It has been labelled as Wave 1 on the chart here. An impulse is usually followed by a corrective wave in the opposite direction.

SPX500 followed up with a counter trend rally since 2965 levels and unfolded a flat corrective structure that terminated around 3184, labelled as potential Wave 2 here. If the above lower degree counts are correct, SPX500 should stay below 3185 and resume towards 2750 levels.

Overall, SPX500 remains bearish against 3230 interim resistance and broadly against 3400 mark. Most traders might have initiated fresh short positions around 3200 mark, with stops above 3400 and potential target below 2750 and 2500 respectively.

Prepared by
Technical Analysis Team

Disclaimer: This information has been produced by a third party, for general information purposes only, and is not indicative of future results. Abans Global takes no responsibility for its accuracy or completeness. Any opinions expressed do not reflect those of Abans Global. This information does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should seek independent advice before making investment decisions. Reproduction of this information, in whole or in part, is not permitted. Please note: If you are a Professional client, you are not eligible for negative balance protection and you could lose more than your initial deposit.

Trade with
Abans Global

  • Authorised and Regulated by FCA
  • Customer Support 24/5
  • Low Spread & Commission
  • Instant Execution
  • No Dealing Desk
Interested in knowing more about our products

Simply send an e-mail to us at: support@abansglobal.co.uk
Contact us on +44(0) 203 936 9000

We will be happy to address all your queries

Our Products

Offering state of the art execution services through multiple top-tier liquidity providers. Abans Global provides you with a tailor-made solution to match the demanding requirements of your business, with the multi-assets offering, advanced trading platforms and FIX API connectivity that provides ultra-low latency.

Forex

Forex

Know More

View more
Cfd’s

Cfd’s

Know More

View more
Equities

Equities

Know More

View more
Indices

Indices

Know More

View more
Commodities

Commodities

Know More

View more

Create Demo Account

Try Demo

Create Live Account

Sign In