S&P500 Still Looking Bullish

Grega Horvat

S&P500 is trading bullish since November of 2016, when wave II was completed. From there price continued strongly higher into wave III which can be in late stages with current expanding diagonal in sub-wave five which may see a top at 2500/30 area. Afterwards a three-wave correction into wave IV can follow.

S&P 500 Daily Chart

S&P 500 Daily Chart

Regarding the 4h view, E-mini S&P500 is trading in a complex upward move within wave five, final leg of an expanding diagonal as shown on a daily chart. We can see that price made a new sharp reaction higher which is now a confirmation that  wave c of Y is in progress. Ideally current rally will search for a top near the 2510 region this week.

S&P 500 4 Hour Chart

S&P 500 4 Hour Chart

However, if price will remains in sharp bullish mode and breaks above 2500 then market may be headed up to 2540 area per our COUNT #2.

S&P 500 4 Hour Chart (2nd count)

S&P 500 4 Hour Chart (2nd count)

Source: www.ew-forecast.com

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