S&P 500: Expect a Bounce off the November Unfilled Gap Up

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$SPX #micro #wave i down – ii up

S&P 500 cash index has a very clean wave count:

S&P 500 Cash index, 15 min

We can see a completed (a) up, (b) down, (c) up structure of a bounce off the October 2022 low. I count that bounce as a corrective wave B up that has to be followed by a strong decline in wave C down targeting mew lower lows.

The wide cyan band is a huge unfilled gap up that starts at 3,859.

Most likely that upper edge of the unfilled gap up would work as a strong support.

Note that its upper edge is nicely aligned with a meaningful 41,4% retracement = 3,850.

This is where this move down in subwave c of wave i down may bottom.

Then we may expect a bounce in wave ii up that can come back and test the lower edge of the unfilled gap down left today = 3,958.

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