The previous short forecast for the S&P500 index was canceled ahead of schedule, the target of the fall was not fully met, like most of the short forecasts for the last year. A wedge (in red) was formed and completely executed in the 3rd wave of the Great Wedge (in white) in the form of an ABC wave (in blue). We have a reverse H&S pattern, which is still in the stage of formation. The target of this pattern execution lies exactly at the level of reaching the upper edge of the Big Wedge (index price 4200). A slow growth to the value of 4200 is assumed, and then the index will creep upward along the upper white line, perhaps a bullish trap will be created with the price bullying above the upper edge of the Big Wedge, followed by an inevitable correction (execution of the Wedge pattern) with the target indicated by the dotted red arrow. The timing of reaching the 5th wave of the Big Wedge is early summer-late June 2021, which is in good agreement with the beginning of the summer decline in trading in the markets - market participants will prefer to fix their positions, which will be reflected in the expected correction.
Trade closed: target reached:
Target 4200 is acieved.