The medium-term SPX structure hints that a new large bearish trend is forming in the market, the initial part of which takes the form of a 5-wave impulse consisting of primary sub-waves ①-②-③-④-⑤.
Most likely, the first four parts of this pattern were fully completed.
At the time of writing, the formation of the impulse ⑤, in which the intermediate wave (1) was built, has already begun.
In the near future, a small corrective growth in wave (2) is possible, after which the market will continue to move down in the intermediate sub-waves (3)-(4)-(5).
It is possible that the bears will have enough gas in the tank to reach 1753.0, since this target would respect the tenancy of impulse ③ and ⑤ being equal.
If we consider an alternative scenario, we will see that the bearish impulse a of a cycle degree may have been fully completed, and the market has already started to form a bullish correction b.
If the market moves in this scenario, we will see an active growth of the market over the next trading days.
Bulls can rise to 2932.5, this target takes into account the fact that at the specified level, corrective wave b will be at the 61.8% along the Fibonacci lines of bearish impulse a of a cycle degree .
It is preferable to add this pair on our watchlist!