S&P 500 Index Under Pressure – Another -10% Drop Incoming?

Apr 7

Today, I want to analyze the S&P 500 Index(SPX500) for you. This index is one of the most important indices in the US stock market, which has been determining the direction of parallel financial markets such as crypto and especially Bitcoin(BTCUSDT) for the past few days, so an analysis of this index can be important for us.

The S&P 500 Index started to fall after Donald Trump imposed new tariffs on countries around the world, which was like a coronavirus.

The question is whether this fall is temporary or will continue. To answer this question, we need to consider many parameters, but if we look at the sds chart from a technical analysis chart, we can expect a further decline.

The S&P 500 Index is moving near the Resistance zone($5,284-$5,095) and is completing a pullback. It also lost its important Uptrend lines last week, which is not good news for the S&P 500 Index and US stocks.

From an Elliott wave theory, the S&P 500 IndexS&P looks like it has completed the main wave 4, and we should expect the next decline(-10%).

I expect the S&P 500 Index to attack the Heavy Support zone($4,820-$4,530) at least once more. The area where we can expect the S&P 500 Index to pull back is the Potential Reversal Zone(PRZ)[$4,675-$4,457].

What do you think? Will the S&P 500 Index continue its downward trend, or was this decline temporary?

Note: If the S&P 500 Index touches $5,408, we can expect further Pumps.

Note: There is a possibility of a Bear Trap near the Heavy Support zone($4,820-$4,530) and PRZ.

Please respect each other's ideas and express them politely if you agree or disagree.

S&P 500 Index Analyze (SPX500USD),4-hour time frame.

Be sure to follow the updated ideas.

Do not forget to put a Stop loss for your positions (For every position you want to open).

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Apr 8

Trade active

Trade was activated in Potential Reversal Zone(PRZ)[$4,675-$4,457]

Apr 8

Note

The White House announced that an additional 104% tariff on China would take effect this afternoon. This news could be another trigger for a decline in US indices.

Apr 9

Trade closed: target reached

First Target Done

Since the momentum of the decline in the main wave 3 was high, I would have expected wave 5 to be a truncated type.