S&P 500, Ascending-Triangle, Pullbacks Incoming When Completed!

Hello Traders Investors And Community,

Welcome to this analysis about the S&P 500 Index, we are looking at the 4-hour timeframe perspectives. It is important to note that the index struggles in the recent uptrend to develop further and make new sustainable highs in the structure besides that inflation-adjusted earnings fell to pre-corona-crash conditions which can also be a factor for the incoming pullbacks awaited here. Currently, the bearish perspectives should not be kept by side for the index and as I discovered how it is forming also a decisive formation that when completed will lie ground for bearish developments and volatilities to the downside.

Structural Developments:
Technically speaking as when looking at my chart now we can watch there the index developing this main ascending-triangle-formation with the coherent wave-count within and the waves from A to D already completed. Such a formation is in the vast majority of times a formation that indicates a bearish reversal to the downside and is also likely to happen here now. Also, the index has a major resistance in the structure marked in my chart in red within the 4250 levels from where a pullback is highly likely to develop when the index moves into this zone. Currently, the index still holds above the 100-EMA however when the index closes below this EMA it will also be the additional confirmation of the bearish continuations.

Upcoming Determinations:
Taking all these factors into consideration the formation has a very high possibility to complete within the next times, therefore the index must not necessarily travel to the upper resistance and complete the wave-count there, it is also possible that the index stays below and from there completes the wave-count with the final breakout below the boundary incoming. What is the decisive factor, in this case, is the final confirmation below the lower boundary and when this happens it will be the origin for the bearish continuations and protraction to the downside till the lower levels of initial support marked in blue are reached. As traders, we should come to the conclusion and properly devise on this upcoming volatilities.

In this manner, thank you everybody for watching, support the idea with a like and follow or comment, have a good day as well as weekend, and all the best to you!
"The true trading challenge is to perform well when market conditions reverse."

Information provided is only educational and should not be used to take action in the markets.