S&P500 shows a five wave move within wave 5) since mid of November which means that sooner or later, a deeper and new corrective set-back may occur. Particularly we see price picking up, away from the lower channel line, which indicates final sub-wave five of 5 to be in progress, which can search for a top near the 2700/2710 region. A later break below the channel line would suggest a locked in a top and a three-wave bearish reversal to be in progress.
Now let’s look at CADJPY.
We see CADJPY at the end of a wave 4) pullback that belongs to an ongoing five wave recovery in wave C. Ideally a new leg up will resume after recent turn up from around 86.76 area and the upper base channel line. Wave 5) of C can in weeks ahead lift prices up, to around the 93.60 region, where Fibonacci projection can project end of blue wave C.
Thank you and have a nice holiday traders!
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