Good day traders,
Crude oil is dropping in impulsive fashion, now ideally unfolding final stages as part of a bigger, bearish cycle, labelled as wave 5). We see price already dipping, approaching the end of leg 5 of 5), which can look for support, and a bullish reversal near the 54.50/54.0 region. A later rally in impulsive fashion, and above the 56.20 level would confirm a bullish reversal.
Crude oil, 1h
S&P500 can be trading in wave »v«, the only question is if it’s as part of wave 5 or wave 3. However, the RSI bullish divergence is already showing that we may see some recovery at least in three waves back to around 2800 area. But, if we see a strong bounce back above 2840 region, then we may consider a much bigger recovery, because then we would have a completed five-wave decline.