empty
InstaForex Loprais Team - Official participant of the Dakar rally
InstaForex Loprais Team - Official participant of the Dakar rally
This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.
Start as Beginner
How to start trading
Useful information
Training and recordings
InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.
Become Investor
PAMM System
ForexCopy System
Passive investments
Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.
Become Partner
Main Page
Partner Area
Advantages for Affiliates
Registration
This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.
All Promo Campaigns
Bonuses
Contests
Events
Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.
Full details
Forums
We are in social networks
Forex humour
Forex Portal
InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.
Learn More
History
Why Choose Us
InstaSport
Regulation
Company News
Awards
InstaForex Stars
InstaForex Offline
Headquarters
Key documents
Social Responsibility
03.03.2025 10:41 AM
Funds React with Growth Amid White House Scandal
Open trading account Open demo account

This image is no longer relevant

The wave structure on the 4-hour chart for #SPX appears uncertain but generally clear. The 24-hour chart reveals a global five-wave structure, so expansive that it does not fully fit within the terminal window even at the minimum scale. In simple terms, U.S. stock indices have been in an uptrend for a very long time. However, we know that trends eventually reverse. Currently, the formation of wave 5 in wave 5 is ongoing. The index has made four unsuccessful attempts to break above 6093, which corresponds to 200.0% Fibonacci retracement from wave 4. In my view, a new corrective wave or a series of corrections is likely in the near future. The U.S. stock market is overheated, and more analysts are beginning to talk about a "bubble."

Switching to the 4-hour chart, we can observe a completed complex corrective structure (a-b-c-d-e) followed by a new upward wave structure in an a-b-c formation. This suggests that a new bearish structure is now forming, with wave b currently unfolding, after which further decline should resume. Another upward impulse could occur, but it would likely be followed by a more significant drop in the index. At this stage, I would rely more on the daily chart analysis.

The #SPX continues trading near historical peaks, and investors remain reluctant to exit their positions in major U.S. stocks. As I previously mentioned, the stock market entered a new bullish phase nearly two years ago, when U.S. inflation began slowing, and expectations of Federal Reserve monetary policy easing emerged. Now, this process is fully underway, and I would not expect further significant gains in U.S. stock indices as the market has already priced in these factors.

The fundamental backdrop for U.S. stock indices continues to deteriorate. The latest GDP report came in weaker than expected, indicating that the economy is slowing down. The Federal Reserve has essentially halted its monetary policy easing, whereas the stock market favors looser financial conditions and dislikes tightening. Stocks thrive in a dovish monetary environment or at least when easing is expected, which has been the case for the past two years.

Now, however, inflation in the U.S. is rising again, and Trump's policies are likely to accelerate it even further. The U.S. president's approach to international affairs is causing more investor concern than optimism. I still believe we are in for a prolonged and complex correction, making it unlikely that we will see further growth in stock indices.

Over the weekend, a scandal erupted at the White House involving Donald Trump and Volodymyr Zelensky. The fallout led to Ukraine backing out of a natural resources deal and the U.S. withdrawing further financial support for Ukraine. Over the past six weeks, almost every geopolitical development of this nature has fueled demand for U.S. stocks. However, I still expect SP500 and other indices to decline.

This image is no longer relevant

General Conclusions

Based on my #SPX analysis, I conclude that the index is nearing the end of its uptrend. Given the current situation, I suggest monitoring the 6125 level and Trump's economic policies. Trump is making decisions that threaten the stability of the U.S. economy and major American corporations, including trade wars, tariffs, and import restrictions. The likelihood of a new downtrend is increasing daily. The "bubble" in the U.S. stock market is at its peak. The 4-hour chart suggests another potential upward move before a drop, while the 24-hour chart points to the conclusion of the uptrend.

On the higher wave scale, the structure is much clearer—a five-wave bullish cycle with a five-wave pattern within the final wave. This fifth wave appears to be approaching its end. As a result, I would prepare for a prolonged and complex correction, which may have already begun.

Key Principles of My Analysis:

  1. Wave structures should be simple and clear. Complex formations are difficult to trade and often require adjustments.
  2. If you are uncertain about market conditions, it is better to stay out.
  3. There is never 100% certainty in market direction. Always use Stop-Loss orders to protect capital.
  4. Wave analysis can be combined with other analytical methods and trading strategies.
Chin Zhao,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
All Analytics
Wave analysis
EUR/USD Analysis – April 7th The wave structure on the 4-hour chart for EUR/USD has transformed into a bullish one. I believe no one doubts that this transformation occurred solely due to the new U.S
Chin Zhao
19:25 2025-04-07 +02:00
1255
Wave analysis
GBP/USD Analysis – April 7th The wave structure of GBP/USD has also shifted toward a bullish, impulsive formation—"thanks" to Donald Trump. The wave pattern is nearly identical to that of EUR/USD. Up until February
Chin Zhao
19:22 2025-04-07 +02:00
1510
Breaking Forecast Trading Plan Cryptocurrencies USD/RUB Russian Economy Video Analysis
Trading Instruments
EURUSD GBPUSD USDCHF USDCAD USDJPY AUDUSD EURGBP EURJPY NZDUSD EURNZD Silver Gold #CL #USDX COVID-19 Bitcoin
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Point of no return: markets break down as US enters bear phase

The US equity market is under pressure as futures spiral, the VIX surges, and Treasury yields plunge—signaling a potential structural crisis. Panic marks the start of Q2 The first week
Anna Zotova 13:29 2025-04-07 UTC+2

Full-blown market drama: USD, Oil, S&P 500, and Big Tech all crashing

Financial markets are shaking again: the S&P 500 is tumbling so fast that veterans recall the COVID-era crash, oil is taking a one-two punch from Trump and OPEC+, the dollar
Аlena Ivannitskaya 12:10 2025-04-07 UTC+2

Recap of US stock market on April 7. SP500 and NASDAQ open new week sharply in red

The US benchmark stock indices closed the New York session on Friday in the red. The S&P 500 plunged by 5.97%, while the Nasdaq 100 lost 5.92%. The industrial
Jakub Novak 10:34 2025-04-07 UTC+2

Update on US stock market. Trump's tariffs crash US stocks. Recession realistic, but current market quotes great for buying

S&P500 Market update on April 7. Snapshot of the US major stock indices on Friday:* Dow -5.5%* NASDAQ -5.8%* S&P 500 -6% S&P 500 is trading at 5,074 within
Jozef Kovach 09:40 2025-04-07 UTC+2

Stocks slide sharply as broad tariffs raise recession risk

S&P 500 US equities plunged on Thursday as President Donald Trump's sweeping new tariffs triggered a sharp sell-off and reignited fears of a global recession. The Dow fell by 4%
Jozef Kovach 11:14 2025-04-04 UTC+2

US stock market on April 4: SP500 and NASDAQ suffering heavy losses

As a result of yesterday's regular session, US stock indices closed in the red. The S&P 500 plummeted by 4.84%, while the Nasdaq 100 lost 5.97%. The industrial Dow Jones
Jakub Novak 11:13 2025-04-04 UTC+2

Update on US stock market: Trump strikes at global trade with tariffs and crashes markets

S&P500 Update on April 03 Snapshot of benchmark US stock indices on Wednesday: Dow, NASDAQ, S&P 500: all -2% S&P 500 at 5,535 in the range of 5,500 to 6,000
Jozef Kovach 11:57 2025-04-03 UTC+2

Stock Market on April 2: S&P 500 and NASDAQ Hit New Yearly Lows

At the close of yesterday's regular session, U.S. stock indexes ended in positive territory. The S&P 500 rose by 0.67%, the Nasdaq 100 gained 0.87%, and the Dow Jones Industrial
Jakub Novak 09:13 2025-04-03 UTC+2

US markets show resilience despite tariff concerns and economic weakness

S&P 500 The US stock markets paused ahead of President Trump's anticipated tariff announcements. The major indices ended the session mixed: the Dow Jones closed flat, the Nasdaq gained 0.9%
Jozef Kovach 12:15 2025-04-02 UTC+2

Update on US stock market on April 2: SP500 and NASDAQ regain their footing before crucial event

Following yesterday's regular session, US stock indices closed mixed. The S&P 500 rose by 0.38%, while the Nasdaq 100 gained 0.87%. The industrial Dow Jones dipped by 0.04%. Asian indices
Jakub Novak 11:19 2025-04-02 UTC+2

Top analytics

Relevance up to 03:00 UTC--4
USD/JPY: Simple Trading Tips for Beginner Traders on April 7. Review of Yesterday's Forex Trades
09:27 2025-04-07
Forecast
Relevance up to 04:00 UTC--4
Jerome Powell Is Not Ready to Intervene
11:11 2025-04-07
Fundamental analysis
Relevance up to 02:00 UTC--4
Intraday Strategies for Beginner Traders on April 7
08:22 2025-04-07
Forecast
Relevance up to 02:00 UTC--4
EUR/USD: Simple Trading Tips for Beginner Traders on April 7. Review of Yesterday's Forex Trades
09:00 2025-04-07
Forecast
Relevance up to 20:00 UTC--4
EUR/USD Pair Overview – April 7. Nonfarms and Powell Saved the Dollar
03:23 2025-04-07
Fundamental analysis
Can't speak right now?
Ask your question in the chat.
Widget callback
Callback widget
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.