SPX500 Resistance Seen Around 3480/90 Zone

17 September 2020

SPX500 might be pulling back towards 3480/90 levels before resuming lower. The indice had earlier reversed sharply from 3588 through 3300 levels. After breaking below 3350, bears confirmed that they are in control and here to stay for long.

SPX500 probable wave counts are as follows: The indie had dropped through sub 2200 levels in March 2020. The might be a larger degree Wave ((4)) termination point as highlighted on the chart. Further to it, the indice managed to produce a religious rally through 3588 highs early this month.

SPX500 might have terminated a larger degree Wave ((5)) at 3588 mark. If the above proposed structure holds well, the indice has carved a meaningful top and should be preparing to reverse at a similar degree. The initial target for the drop could be around 2200 levels.

Looking at the lower degree wave structure, the drop from 3588 through 3300 seems to be the first lower degree impulse wave. SPX500 might be underway to produce a meaningful corrective rally towards 3480/90 levels.

Also note that fibonacci 0.618 of lower degree Wave 1 is seen through 3489 levels. Hence, bears might be poised to take control if prices manage to reach there. The indice might be considered an ideal candidate to be sold on rallies.

Traders might be preparing to initiate short positions around 3470/90 zone with a protective stop above 3588 and projected targets below 2500 at least. Only a break above 3588 would nullify the above bearish structure.

Prepared by
Technical Analysis Team

Disclaimer: This information has been produced by a third party, for general information purposes only, and is not indicative of future results. Abans Global takes no responsibility for its accuracy or completeness. Any opinions expressed do not reflect those of Abans Global. This information does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should seek independent advice before making investment decisions. Reproduction of this information, in whole or in part, is not permitted. Please note: If you are a Professional client, you are not eligible for negative balance protection and you could lose more than your initial deposit.

Trade with
Abans Global

  • Authorised and Regulated by FCA
  • Customer Support 24/5
  • Low Spread & Commission
  • Instant Execution
  • No Dealing Desk
Interested in knowing more about our products

Simply send an e-mail to us at
support@abansglobal.co.uk

Contact us on
+44 (0) 203 868 5803
+44 (0) 203 868 5825

We will be happy to address all your queries

Our Products

Offering state of the art execution services through multiple top-tier liquidity providers. Abans Global provides you with a tailor-made solution to match the demanding requirements of your business, with the multi-assets offering, advanced trading platforms and FIX API connectivity that provides ultra-low latency.

Equities

Global    Equities

Know More

View more
Forex

Forex

Know More

View more
Cfd’s

Cfd’s

Know More

View more
Indices

Indices

Know More

View more
Commodities

Commodities

Know More

View more

Create Demo Account

Try Demo

Create Live Account

Sign In