$SPX Wave 5 Complete and CPI Sets Up a Reversal?

TRIGGER TRADES
01-12

$S&P 500(.SPX)$ Primary | Wave 5 Termination?

Friday’s new All-Time High likely completes the ABC structure for Wave 5, technically validating the termination of the 8-month impulsive sequence from the April low.

While price can drift higher, I am braced for a reversal as $NASDAQ 100(NDX)$ $iShares Russell 2000 ETF(IWM)$ $Dow Jones(.DJI)$ all hold pending terminal wave structures.

Tuesday's CPI aligns perfectly as the catalyst to trigger this move.

Triggers: A break of 6880 (2/4 Trendline) warns the trend is over.

- A Weekly Close < 6770 sends the mechanical sell signal (Loses 50-DMA + Inverts FVG).

SPX Alternate | Diagonal Extension

Both counts call for a pullback here, but the degree matters.

If this is a leading diagonal, we are completing a marginal Wave 3.

I am looking for a drop to break the April trendline (~6880) but hold 6750-6800 for Wave 4 support.

From there, the setup targets a final grind > 7000 for Wave 5

Note: A new ATH on NDX increases the odds of this diagonal playing out.

Invalidation: Below 6700

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