SPX500 Top In Place Around 3588 Levels

10 September 2020

SPX500 might be in complete control of bears as the indice drops more than 8.0% since printing 3588 highs early this month. Furthermore, it has clearly entered into the sell zone of its immediate trend line support as bears were able to push towards 3300 mark.

SPX500 has managed to pullback since then, and trades close to 3400 mark for now. The indice has carved a meaningful bearish boundary between 3588 and 3300 levels respectively. Watch out for a counter trend rally towards 3470/80 mark before finding resistance again.

SPX500 probable wave counts are as follows: The indice had terminated its larger degree Wave ((4)) around 2190 levels in March 2020. The sharp decline was just a part of a complex corrective structure. Since then, it has rallied through all-time highs around 3588 levels.

The above rally can be clearly sub divided into 5 waves, and it could be seen as the larger degree Wave ((5)) termination. If the above proposed wave counts are correct, SPX500 might be preparing for a meaningful corrective drop at a larger degree.

The indice might be preparing to terminate its first wave around 2190 mark, before producing a counter trend rally. Believe it or not, the drop is expected to be sharp from 3470/80 region. Bottom line is that 3588 should hold.

Traders might be preparing to initiate fresh short positions around 3470/80 resistance zone, with protective stops around 3600 mark and projected targets below 2500 over the near term.

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