S&P 500 Completes Wave 5 via Ending Diagonal — Correction Ahead?

Jan 16

The S&P 500(SPX500) is a crucial index in the financial markets, and understanding its trends can greatly help in analyzing other markets, such as cryptocurrencies, especially Bitcoin(BTCUSDT).

The S&P 500 is currently near its resistance lines, and from a classic technical analysis perspective, it has formed a rising wedge pattern.

From the Elliott Wave perspective, it seems that the main wave 5 in the S&P 500 index has been completed via an ending diagonal.

Considering the ongoing tensions in the Middle East and the U.S. moving its forces to the region, there’s a possibility that these tensions may escalate in the coming days. Therefore, given that the S&P 500 is currently near its all-time highs, and based on our technical analysis, going long might be risky, and I currently favor short positions for the S&P 500.

I expect that after breaking the support zone($6,930_$6,892), the S&P 500 index could drop to around $6,863.

Furthermore, since Bitcoin has a correlation with the S&P 500, a decline in the S&P 500 could also lead to a drop in Bitcoin.

First Target: $6,923

Second Target: $6,863

Stop Loss(SL): $7,009

Points may shift as the market evolves

💡 Please respect each other's opinions and express agreement or disagreement politely.

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

🛑 Always set a Stop Loss(SL) for every position you open.

✅ This is just my idea; I’d love to see your thoughts too!

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Jan 17

Trade active

Trade was activated

Jan 19

Trade closed: target reached

Full Target Done: Risk-To-Reward: 2.15