S&P 500 is recovering very nicely and has broken decisively above 6620 after moving out of the diagonal formation a few weeks back. So clearly, we are now in a new recovery phase that could extend further in the near term because that clearly looks like an impulsive advance, meaning that recovery should be made by five subwaves, so more upside is coming after wave 4 pullback. Support is at 7053 level, followed by the 6976 level.
On the daily chart, the market reacted nicely from the 6500 support area, which confirm that a higher degree wave four has been completed. If that’s the case, then wave five of five is now already in progress, looking for much higher prices, ideally into 7200.
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