S&P 500 tests highs as ending pattern emerges
|S&P 500 moved very nicely higher from the November lows and recently reached new all time highs before turning slightly lower in the last few sessions. This pullback raises the question of whether the index is already running into more serious resistance up here, especially as we are seeing overlapping price action, which looks like an ending diagonal. It may be too soon to call a top, but it is important to be aware of a potential STRONG reversal in the weeks ahead, which is often the case once an ending diagonal is completed. Looking at the latest price move more detailed, seems like wave (5) is already here, but can retest the upper line once again, near 7050. Drop below 6783, will be very bearish.
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