S&P500 has turned lower than expected last week, so we assume that the current leg down is part of a complex corrective pattern. We are talking about red wave 4) that is still unfolding, possibly making a triangle so the price can stay trapped in the 1997-2110 range for a few more days as wave E should still unfold after a completed wave D that can find resistance at the upper range; near 2090.
S&P, 4H
A Triangle is a common 5 wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. Triangles are overlapping five wave affairs that subdivide into 3-3-3-3-3.
Basic Triangle Pattern:
