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SPX500 Bullish Impulse for 5K Testing

SPX500 Bullish Impulse for 5K Testing

We will continue to examine the SPX500 situation from Elliott theory’s point of view. The assumption is that there is a large impulse trend, marked by five subwaves of the cycle degrees I-II–III-IV–V.

The impulse pattern may have been completed in its three components. There is also a possibility that cycle correction wave IV has ended. It looks like a triple zigzag of the primary degree Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ.

The price could rise to 4326.34 by the end of the fifth cycle wave V. This impulse will take the form a primary degree impulse as shown on this chart.

Let’s also consider an alternative scenario in which the actionary wave Ⓩ will strive for equality with the wave Ⓨ.

Market participants could expect a decline in SPX500 to 3322.12. At that level, sub-waves Ⓩ and Ⓨ will be equal. Only when the price reaches that level will it turn around and begin an uptrend. A bearish impulse wave (C) of the intermediate degree is required to complete the wave Ⓩ.

The chart shows trend lines, which indicate possible future movement.

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