Triangle On S&P 500 Pointing Higher
S&P 500 is trading nicely higher this month, with a clear impulsive personality away from 1981 area where market completed a big corrective set-back. As such, we will look now much higher on stocks as current rally should be made by five waves. At the moment, we see market trading very slow in the middle of a summer, so we believe it's just a pause within uptrend. We are looking at wave four now that can be a triangle which should send price to a new high; up into wave 5), possibly even to 2200 region.
S&P 500, 4H
A Triangle is a common 5 wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.
Basic Triangle Pattern:
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