Current consolidation in S&P 500 could shape a triangular pattern ABCDE. The drop started on 18th of April shouldn't exceed the low of the wave C at the 2553. The breakout of triangle could be a trigger to enter long. Some riskier people could buy on the dip to the downside of Triangle but it would be a mere guessing as the WXY main count could still unfold successfully (related idea). The minimum target area starts at the former top at the 2873.
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It looks like the pattern develops in line with the triangle model. The wave "E" retraced the wave "D" very deep down to 78.6% and that is a healthy sign. Now we see how the index is approaching the trendline resistance (B-D line). Watch for the breakout to enter long.
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Breakup above wave D beyond the 2718 makes this idea valid and dominant
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Despite that Nasdaq is rocketing higher the S&P 500 and Dow are lagging and it makes me think of one old chart I posted earlier for the S&P 500 in February tradingview.com/chart/SPX/hYG5NSSj-S-P-500-Big-map-with-current-correction/. It was simplified as the correction just started and in reality it is not an ABC it could be a larger WXY correction but the blue zigzag there shows the path.
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Here is an updated chart for the current idea MACD shows bearish divergence and I would recommend to book profit here as price couldn't overcome the 2802 the crucial resistance and there is a chance of a complicated correction ahead and I will prepare the separate post later
Trade closed manually
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Better take profit as I don't like Dow and AAPL chart structure.
Hi Aibek, Have to give you thumb up for your spx prediction.
So far it just follow very well, so your target is 2870 still?
Thanks
aibek
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@meson1983, Hey, meson1983! Thank you for support and a warm feedback. You hit it right on time as I planned to update the SPX as I don't like what's happening in the Dow and AAPl and recommend to book profit here.
meson1983
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@aibek, Thabks for the quick update. The reason I was asking is also because I felt the 2800 resistance could give us a short term pull back at least.
Can’t wait to see your new chart:)
So far it just follow very well, so your target is 2870 still?
Thanks