S&P500: Persistent Support

The S&P 500 continued its recovery following its reaction to the support at 5509 points. However, in our primary scenario, we expect the index to fall below this mark to ultimately complete wave [4] in green within our color-matched Target Zone (coordinates: 4988 points – 4763 points). Within this range, there are entry opportunities for long positions, which could be hedged with a stop 1% below the Zone’s lower boundary. Once the corrective movement has reached its low, the final upward movement of the green wave structure should commence. In the process, the index should gain significantly and reach the high of wave [5] above the resistance at 6166 points. If this mark is surpassed prematurely, our alternative scenario with a 30% probability will come into play.