FX.co ★ sudheerkumar | Don't panic - buy stocks!

S&P 500: Is the Next Top Almost Here?

The S&P 500 is bouncing back, but this rally could be running out of steam. After last week's sharp selloff, the market has started recovering. But on the daily chart, something interesting is developing. We're seeing a possible five-wave pattern near the end of the current move. That means we could be getting close to another short-term top. Here's what I'm watching: --> 7,641–7,649: The Resistance Zone The S&P 500 could still push a little higher, but this is where I expect the next important test. A top could form in this area. There's also a chance yesterday's high was already the top. Neither scenario is confirmed yet. --> 7,710: The Game-Changer This is the level that could change the entire outlook. As long as the S&P 500 stays below 7,710 on a closing basis, I'm watching for a possible top. But if price closes above 7,710, the current topping scenarios are off the table. In that case, I'd start looking for a pullback followed by another move higher. MY TAKE I'm not calling the top just yet, but I believe we're getting close to an important turning point. The next move could tell us whether this recovery is running out of steam or has more room to run. Two things I'm watching: 7,641–7,649 for a possible top. 7,710 for a change in the outlook. What do you think? Is the S&P 500 about to turn lower, or will buyers push it into another rally? #SPX #SP500 #ES #TechnicalAnalysis #PriceAction