Let’s look at the S&P 500 and its 4-hour structure. The S&P 500 has been trading clearly bullish since the end of August. We see price unfolding a five-wave movement to the upside, with price currently trading at the end of Wave 3) of a bigger impulse. Remember: An impulse is a motive wave, meaning it contains five sub-waves. This means, we can still expect some upside to follow on the S&P 500, as only three waves are visible. We still lack waves four and five, before a bigger three-wave pullback could come in play.
S&P 500, 4-hour
Ideally, the price will touch region near 2540 level for a bigger wave III.