SPX is entering into a new phase of complex corrective wave

The SPX downside is likely to be over after the index was seen invalidating the wave-4 rule of the 5-wave impulse Elliott wave structure. Furthermore, theres a bear trap as price never closes below 6% from 5,120 major support and strong bullish pressure was seen thereafter, and returning back above the uptrend with strong bullish pressure was seen as a strong upside.

Stochastic Oscillator has confirmed the oversold signal.

Target is likely to see 5,792 as the next immediate target. But we do not foresee a new high yet. We think that the correction is likely to unfold in a three wave manner.