The S&P 500 index has seen a huge impulsive rally since the 2009 low at 673. Can this impulsive rally be sustained? We think not. We are now close to the top of wave 5 which we expect will be seen at 4,444 as the ideal wave 5 target. It is possible that this ideal target will be slightly overshot, but that will not change the overall picture of the S&P 500 rally being relatively close to finishing its long-term impulsive rally from 673.
Looking at the RSI we see a clear loss of upside momentum and negative divergence also pointing towards a possible top soon.
Trading recommendation:
It's time to consider taking profit or at least tighten.
The material has been provided by InstaForex Company - www.instaforex.com