FX:SPX500 S&P 500 index of US listed shares
Current Labeling: corrective wave 4 up. I have two scenarios for wave 4, orange and white.
ORANGE SCENARIO - This scenario assumes wave 4a and 4b are finished, and 4c is close to finishing.
WHITE SCENARIO - This scenario assumes that the move from 1810-1940 is wave 4a up and close to finishing. Next, wave 4b should set a Higher Low, so > 1810, possibly at support 1830. Once 4b is finished, wave 4c will target the 1980 area to finish wave 4 up. After that, wave 5 down will take the S&P500 to Lower Lows.
Both scenarios agree on overweighting shorts for a retest of the JAN 20 Low.
There’s resistance @ 1940, 1955 and 1980 so that could be the area where wave 4 will top and wave 5 down will start.
My scenario of wave 4 up becomes invalid if 1993, the low of wave 1, breaks to the upside as wave 4 can not overlap wave 1.