It appears that the Diverging Channel Up we spoke of last week eventually prevailed and the S&P500 index (SPX) is printing a Higher High formation similar to December 01 - 13. The pattern that carries this top formation is a Cup, which is now trading around the 4H MA50 (blue trend-line).
Based on the December fractal, the first target is the 4H MA200 (orange...
S&P500 is trading within a Triangle on the 4H chart (RSI = 53.651, MACD = -10.000, ADX = 26.709). The price is now testing the 4H MA50 and if broken we expect it to reach the Lower High trend-line. The RSI broke above a 20 day bearish trend-line so we are expecting a break above the Triangle towards the 3,168 Resistance.
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