S&P500 Could See 1500 Break Before Deeper Retracement

S&P 500 is trading nicely higher for the past few weeks, clearly in impulsive fashion form 1400 swing level. However market is approaching some important Fibonacci levels just above 1500 psycho level so we could see a sizable pull-back from there, but only in a corrective formation. In such case that would be wave 2) as labeled on the chart below. But before that we need to see end of red wave 1). We need to scroll to lower time frames to see the structure within wave 1).

The lower time frame chart (1h) suggests that red wave 1) is still incomplete and that market will most likely make push above this week. Notice that price slowed down in sub-wave 4; ideally forming a flat formation with nice key support area around 1490 which could give you a chance to join a larger trend. Stop-loss/critical zone is below 1475.

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