SPX500 reversing from backside of trendline around 3270

31 lug 2020

SPX500 finally seems to have carved a lower top around 3270 mark yesterday. We have been calling for a potential bearish reversal since last several weeks and the indice seems to be breaking lower now. The wave structure remains constructive for bears as SPX500 had dropped from 3400 through sub 2200 as an impulse, Wave (1) on the chart. The subsequent rally was a corrective zigzag, which reached up to 3280 levels, Wave (2) of a similar degree. If the above structure remains intact, SPX500 should resume lower towards 2200 and beyond as Wave (3) progresses.

Remain short, stop @ 3400, target is open.