Possible Triangle

The market has technically continued its correction from the 1626 high but it seems to be triangulating, so we should expect a break out of this formation soon. That unfilled gap seems to be a magnet and should the market hold 1597-1601 on another test then it is very likely the market will break out in a right angled triangle, similar to the one couple of months ago with the 1538,1539 and 1536 low. We don't see the 1597 test on the cash market but I am taking into account the low Sunday night so a third failed bearish attempt will be a good spot to go long imo (if that level breaks then I'm going long around 1575). The daily MACD is about to do a bullish cross and that favors a lasting rally, so perhaps the next Int bearish wave will either confirm 1560 as the low for the correction or possibly put in the final low.

I shorted per my plans from yesterday at the 1623-1626 resistance and covered once a 5 wave formed on the micro count. And if I see a similar set up tomorrow I will be doing the same, I rather not risk overnight positions during this time. In fact, I prefer not to risk overnight positions ever if I can make similar gains like today trading intraday.

Main S&P 500 Trends*

Short Term Trend = Bearish Leaning Neutral

Medium Term Trend = Neutral Leaning Bearish

Long Term Trend = Bullish 

* Trends are not trade signals. Trends are posted for situational awareness only and does not take into account wave counts, technical or fundamental conditions of the market. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking into consideration other factors.