S&P 500 Range Shows Incomplete Risk-Off Corrective Structure
Gregor Horvat | Aug 29, 2023 03:14AM ET
After Powell's speech last week and some mixed signals regarding their interest rates policy decision during the Jackson Hole economic event, attention will now turn to important NFP data this week plus some inflation data from different countries. So for now the USD still remains in uptrend as there are chances that FED is not done yet, so stocks can stay in risk-off mode.
Looking at the S&P 500, the index has been bullish most of the year; a trend that can resume after slow summer is behind, once a corrective pullback is completed, which for now is still underway. Specifically, we see index in wave 4 on a daily chart.
However, wave 4 should then be made by three waves before correction can come to an end; which is not the case yet, as latest bounce and ranged bound price range around 4400 looks like a correction, ideally Wave (B), which can be a triangle or deeper complex recovery to 4500 if pattern goes more complex. That said, we see room for wave (C) now, which can target the lower side of a corrective channel, 4300 support where drop from August highs can come to an end.
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