S&P500 – Short term rally faces headwind

Monthly: The 5^th wave looks to have completed on the long-term chart. We now expected a period of correction after a hanging man candle was posted on the monthly chart. Further downside is expected

Weekly:  The large correction seen at the end of January remains significant after the bearish outside candle was posted. Lower highs and a further reaction from in front of 2525 highlights a descending triangle. A close below this level on a weekly basis is required to confirm the pattern.

Daily: A reverse head & shoulders formation is forming and should assist in a further correction higher toward the medium-term resistance. We look to sell into the rally.

Action:

We look to Sell at 2740

Stop: A break above 2800

Targets: 2600 & 2530