US Indices crashed during the last quarter of 2018 and these bearish sequences found their bottoms in late December.
Following those massive sell-offs during "Red October" and "Bloody December", SPX (S&P 500) reversed rapidly in what appears to be the return of the Bull Market. Be that the case, a "healthy" retracement is still needed in order for the bull to be able to finish this race.
There are two scenarios presented in the lines below and also in the provided video. Both scenarios suggest a fall possibly coming.
SPX (S&P500) - Techical Analysis
Scenario 1
Leading Diagonal in Minor ABC (blue), part of a larger degree Ending Diagonal in the next Bull Market run, before the potential Market Crash.
In this scenario, a deep pull-back should take place until the 50-61.8% Fibonacci Retracements.
Fibonacci Extensions from Minors A&B (blue) (Minor C projection) are synchronizing with the Wedge Formation towards 2885.00 and/or 2900.00 levels, but also with the joining Bearish Divergence.
Scenario 2
SPX (S&P500) Alternate Count (turquoise) has been labeled in an Impulse which presents an Extension in Minor 3 (turquoise).
This scenario puts SPX (S&P500) within a Minor 4 (turquoise) correction, which should honor the 23.6% or 38.2% Fibonacci Retracements of Minor 3 (turquoise).
Decision
Scenario 1 is the preferred outcome and this is because the rising wedge does not belong in Minor 3.
* Both scenarios suggest a bearish sequence as the next potential structure.
S&P 500 - Resistance
- Resistance 1 @ 2900.00
- Resistance 2 @ 2915.00
- Resistance 3 @ 2980.00
*This article and overall analysis is to be treated as simple market commentary and not as an immediate investment advice.
Many pips ahead!
Lionheart-EWA