SPX500 finally seems to have carved a meaningful top around 3588 mark. The indice has produced an engulfing bearish candlestick pattern on the daily chart and is on the verge of breaking below the trend line support. Bears looking poised to stay in control from here.
SPX500 had dropped below 2200 during the February-March selloff. The drop was an impulse and could be a part of a larger degree corrective structure Wave ((4)) on the chart here. The subsequent rally looks like the final push higher, Wave ((5)).
The indice had registered a high at 3588 this week, very close to fibonacci 0.618 extension around 3604 displayed on the chart here. Yesterday’s drop might indicate the beginning of a major correction lower and potential remains for a push through 2200 mark.
SPX500 had registered a low at 3427 yesterday and a break below 3350 would confirm that bears are back in control. Immediate resistance is now strong just below 3600 mark, while support is seen around 3350 respectively.
Going further, the indice seems to have carved an impulse on the hourly chart or might complete around 3350 mark. This will confirm further downside and that bears are here to stay for a while. The indice might be good to sell on rallies thereafter.
SPX500 might be reversing at a major degree from current levels (3588). A drop towards 2200 would confirm that a larger degree corrective wave is underway and it could take several weeks or months to complete.
Short against 3600, target is open.