SPX 500, Ascending-Wedge Developed, Bearish Declines Follow!

Hello,

Welcome to this analysis about the S&P 500 Index, we are looking at the 4-hour timeframe perspectives. As I detected in my analysis the index has completed a decisive formation that will lie ground for further bearish continuations to the downside. On a broader scale, the index reached high values and moved into overbought conditions as money printing in history was never higher than it was in the last months it is a logical consequence that asset-price inflation results out of it besides this asset-price inflation there is also real consumer good inflation rolling on and accelerating especially in 2021 higher inflation rates are marked. Like most times the central banks and monetary policy does not look after these critical developments rather they continue printing money like never before, an important conclusion is a question of how long this will hold the main market to the upside which has fastly recovered since the corona breakdowns.

From the technical side when looking at my chart we can watch there how the index has formed this major ascending-wedge-formation marked with the black boundaries. Within this formation, the index has a coherent wave-count with the waves A to C already completed and after the finalization of wave C showed up with this heavy bearish declines moving below the lower boundary of the formation which completed the formation bearishly to the downside and activated the lower ascending-wedge-targets marked in my chart in blue within the 4062 level. For now, we can expect the confirmational breakout development below the lower boundary and especially below the 55-EMA in red to hold on which is the source of the further bearish continuations to the downside. Once the targets are reached it needs to be shown how the index reacts to them and if there is the possibility for stabilization because when this does not happen the index will continue bearishly in the bearish-continuation-zone below the targets.

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