S&P500 has lived through two exhausting weeks, exploring virtually every level of the blue area between 4698 and 4552 points, and lately going below it on its search for a new low. However, there is no time to relax now! We expect the index to finish wave in blue just below the blue area (and allow him a buffer zone only until 4492 points). Then, it should be full of go again. The following surge should slingshot the index up into the upper blue area between 4992 and 5099 points, where the destination of wave in blue should be located.
However, we have worked out an alternative that is not to be sneezed at! There is a 40% chance that the index could initially go further down if it lingers below the support at 4492 points. It shouldn’t fall below 4269 points though. The trend reversal should take place in the lower blue belt between 4399 and 4293 points and ensure a new rise.
All in all, S&P500 should be ready to go up again before touching the support at 4492 points. Still, with a probability of 40%, it could slide below this mark at first.
However, we have worked out an alternative that is not to be sneezed at! There is a 40% chance that the index could initially go further down if it lingers below the support at 4492 points. It shouldn’t fall below 4269 points though. The trend reversal should take place in the lower blue belt between 4399 and 4293 points and ensure a new rise.
All in all, S&P500 should be ready to go up again before touching the support at 4492 points. Still, with a probability of 40%, it could slide below this mark at first.
