SPX 5th wave extension
SPX is breaking above the historically high 3580. A long-term rising channel with well-defined breakout levels is being broken. A confirmed break above 3580 is now crucial for an upside extension in a 5th wave. A break and follow-through below 3280 are required for the upside invalidation.
On a daily chart, we can see that the pair is in consolidation just above key resistance 3580. A confirmed break below 3500 is now required for an upside extension invalidation. Our trading system is indicating a potential of 200-500 points of profit in the case of a confirmed break above 3580. The long trade entry could be triggered here with the stop loss below 3500
We have used the combination of the top-down trading analysis to get these key levels explained in the charts.
