Fibonacci Signifies That 6560 Is the Subsequent Upside Goal for the S&P 500…

Now we have shared this chart earlier than, albeit with out the wave depend because the April low, as we see the index in a protracted bull run, labeled as Main-V in blue, which started on the infamous COVID-19 low in March 2020. The blue Main IV. Bull runs transfer in 5 waves, and there haven’t been 5 upward waves since that low. Thus, there’s extra to return.

Particularly, as a result of February excessive at precisely the black 100% extension and the April low on the actual 50% extension, we contemplate the SPX to be in an ending diagonal (ED). The three bigger advancing waves (1, Three, 5) inside an ED can comprise three smaller waves. On this case, the black W-Three is subdividing into three smaller pink waves: a-b-c.

Moreover, the goal vary for a 3rd wave in an ED usually falls between the 123.6% and 138.2% extension of the black W-1 (from the March 2020 to January 2021 rally), measured from the black W-2 low (October 2022): 6738-7121. Subsequently, the excessive on February 19 was pink W-a of W-Three, the low on April eight was pink W-b of W-Three, and now the pink W-c is nicely underway. C-waves most frequently consist of 5 waves, as proven in additional element in Determine 2 under.