E-mini S&P500 is moving sideways for the last two weeks, with plenty of overlaps so move down from the highs is probably corrective. We are tracking a fourth wave retracement which can be now a three wave correction with a triangle pattern that unfolded in wave B of four. As such, the recent leg down to 2150 can be wave C final leg in a corrective set-back that can push the market higher then into wave 5) over the next few days. Rise and daily close above wave B swing high will put bulls in play.
S&P500, 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 into 3-3-3-3-3.
A basic triangle pattern: