S&P 500 four-hour
The S&P 500 (CME:SPH14) moved to the downside as expected; price fell into a third leg of decline counted from the highs, which we think represents an a-b-c move, called a zigzag placed in wave iv). Price is now at 38.2% retracement area, which comes in around the swing high back in December that could turn into a nice support level for a new reversal to the upside.
S&P 500 one-hour
S&P 500 futures fell sharply to the downside yesterday, clearly in impulsive fashion, but don’t turn bearish too soon; now it’s time to be aware of a bigger picture. As you know, we see the current move down from the highs as a corrective retracement. Ideally it’s an a)-b)-c) down in wave (iv) now at the support, so be aware of an impulsive bounce. A rise back above 1826 will put this market back in bullish mode.
