SPX is in the final phase of the impulse. We have a great double top with a strong reversal and divergence.
There are two scenarios here.
First: Impulse completed. We are at the beginning of a deep correction.
Second: The formation of the 4th wave is underway. Dropping below 3890 will cancel this scenario.
In both cases, I consider a decrease of 3600-3800 to be probable. In the figure, I marked the levels where I will buy.
We have 2 open gaps. According to their location, I think that the correction will be deep right up to 3600 and maybe even lower.
If we follow the second scenario with sluggish growth, then I have doubts that we will be able to make a correction and go to the final growth before the recession. This means that we will not make a new high and go below 3500. If we go below 3500, then this is a sell-off and a recession.
If that final purchase I will have from 3500. This is a very strong level.
There are two scenarios here.
First: Impulse completed. We are at the beginning of a deep correction.
Second: The formation of the 4th wave is underway. Dropping below 3890 will cancel this scenario.
In both cases, I consider a decrease of 3600-3800 to be probable. In the figure, I marked the levels where I will buy.
We have 2 open gaps. According to their location, I think that the correction will be deep right up to 3600 and maybe even lower.
If we follow the second scenario with sluggish growth, then I have doubts that we will be able to make a correction and go to the final growth before the recession. This means that we will not make a new high and go below 3500. If we go below 3500, then this is a sell-off and a recession.
If that final purchase I will have from 3500. This is a very strong level.
Waiting for further development.