The SP500 is skyrocketing at the moment. It's reaching new high levels and making everyone to FOMO into chasing the ATH. But I think it won't stand for so long and crash anytime.
TA:
SP500 made a leading diagonal (LD). LDs are known to have deep retracements. The 1st usual target for a LD's retracement is 61.8% but it very often reaches even 78.6%. So it is perfectly normal to have this strong retracement.
One more indicator on why it could be a retracement is the very low volume it has.
The target for the wave ((C)) would be 100% of ((A)) so we have to know where ((B)) ends before knowing the exact price level but I think 3300$ will be a good target.
FA:
Inflation is still way too high (8.5%) and the FED is about to continnue to raise the rates.
We had 2 negative quarters and we might have 3 soon.
Inflation might actually rise much more because of high energy prices coming during the winter & the inflation reduction act which many economists have agreed on that it won't decrease but rise the inflation even more.
TA:
SP500 made a leading diagonal (LD). LDs are known to have deep retracements. The 1st usual target for a LD's retracement is 61.8% but it very often reaches even 78.6%. So it is perfectly normal to have this strong retracement.
One more indicator on why it could be a retracement is the very low volume it has.
The target for the wave ((C)) would be 100% of ((A)) so we have to know where ((B)) ends before knowing the exact price level but I think 3300$ will be a good target.
FA:
Inflation is still way too high (8.5%) and the FED is about to continnue to raise the rates.
We had 2 negative quarters and we might have 3 soon.
Inflation might actually rise much more because of high energy prices coming during the winter & the inflation reduction act which many economists have agreed on that it won't decrease but rise the inflation even more.