$SPX Wave 5 Complete and CPI Sets Up a Reversal?
$S&P 500(.SPX)$ 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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