S&P500
S&P500 is falling sharply since the start of the year, making the big corrective wave four much more complex than at first sight, but despite strong weakness we see the decline from 2074 as part of a temporary weakness. We are looking at wave C or wave 3, where both can be near completion, so we need to be aware of a turn up, into a minimum three wave of recovery. Ideally the price will bounce from a new low, at around 1830 where S&P500 may complete an ending diagonal in wave 5).
S&P500, 4H
An ending diagonal is a special type of pattern that occurs at times when the preceding move has gone too far or too fast. A small percentage of ending diagonals appear in the C wave position of A-B- C formations. In all cases, they are found at the termination points of larger patterns, indicating exhaustion of the larger movement.
An Ending Diagonal Pattern:
