FX:SPX500 S&P 500 index of US listed shares
According to my observations, all the movements in the consist of five or three waves. Now turn your attention to this chart. It consists of three waves. Waves (1) and (3) are trends.Wave (2) is an expanding triangle.Wave (3) is completed. We are seeing the development of wave (A). The wave (A) goes down parallel to the resistance line of the big downward channel. It's simple. If the market will break through the resistance line, then at this place on the chart, we will see the process of forming a tapering triangle (4). If the market can not break through the resistance line, then we will see the movement of the down. I think we will see the formation of a tapering triangle (4).In this case, upon completion of detail (A) wave (B) will break through the resistance line of the channel and lift the market up. But that's not all I wanted to say. Probably the tapering triangle (4) will be positioned horizontally and the time of its formation will be more than that one of the expanding triangle (2).I admit the idea that the value of waves of the triangle (4) will be greater than the triangle (2).Now we are near the support line of the ascending channel.I believe tapering triangle (4) will break the support line.