S&P Futures
Weekly chart trend: Mixed. Main price points: 665.50, and 1252.50. Looking for: Move to 50% Fibonacci level.TeamLFB provides forex related market analysis and trade signals. S&P futures are very bullish on the weekly chart, after a powerful bounce off the 665.50 support area that was established at the start of this year. This recent uptrend, however, could be a pull-back in wave 4 of a bearish impulse count, with wave 5 yet to come. In this case, wave 4 must not overlap the territory of wave 1.The converse technical view is that it may also be a start of a new long-term uptrend, if we consider a possible three wave structure from the 1586 top to the 665.50 lows. However, the next target is shown around the 50% Fibonacci level since the 38.2% retracement did not hold.
Daily chart trend: Long. Main price points: 865, and 1030-1050. Looking for: Two wave counts
The wave count on the weekly chart is considered to a tricky (wave 4 or not); the price structure on a daily chart is also showing us two valid scenarios. On the left side of the chart below, it is showing an impulse structure with five waves up from the 665 lows to current highs, with wave 5 around the target zone. If this is the case, wave 4 discussed on the weekly chart will be rejected, since the fourth wave is a corrective wave, which means it cannot be sub-divided by a five wave move.
On the right side of the chart, we have a different picture where you can see a wave count with a clear zig-zag correction, which is valid for a wave 4 scenario.
Until one of the possible scenarios plays out, we know that prices are trading around the top (wave 5 or wave C), which suggests a temporary turning point around the Fibonacci resistance levels.
4 Hour chart trend: Long. Main price points: 975.50, and 1030-50. Looking for: Wave 5)
The S&P futures have broken through the critical 1015 area on Friday, which invalidated the previous wave count. With this being said, the wave count was reworked into a complex red wave 4) correction with wave 5) in progress. The upside target of wave 5) is between 1030 and 1050 Fibonacci resistance area, where traders may be looking for a possible turning point in wave 5 or a wave C leg of larger degree (daily wave count).
$ Index
4 Hour chart trend: Long. Main price points: 77.45, and 79.51 Looking for: Move higher
The dollar index made a small turning point on Friday around the 76.4% of wave I/A) distance, which may be the key for a move higher in the coming sessions. Traders may notice that the price structure just completed a possible flat correction, discussed on Friday. If correct, the traders may be bullish as long as the market trades above the 77.45 lows, but only if equities find sellers and if oil hits resistance. If this is the case then an impulse move up into wave III)/C) leg should follow.
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