Firstly, let’s look at the daily chart for the S&P 500, where we see a higher degree bullish impulse trading within final stages. We see a higher degree Wave III in the making, that may search for a top and a turning point around the Fibonacci ratios of 261.8 and 38.2. These various projections targets can offer resistance and project end of waves.
S&P 500, daily
Now, above on the daily chart, we can see two converging trendlines within Sub-Wave 5 of III. These two trendlines can form an Elliott Wave ending diagonal, which is a strong reversal pattern and may once complete push price into the opposite direction.
Switching to the 4-hour time frame, where we have a better and clearer look at the S&P 500.
Here we see an overlapping five-wave affair within Wave 5, an ending diagonal that already pushed the price into the opposite direction. This reversal that happened at the start of 2596 level can be an early indication of a completed higher degree Wave III. This can now mean, that a change in trend can be in play, from bullish to bearish. Well, first wave down from 2596 region we labeled as Wave A, the first leg of a three-wave decline. Now price may be trading within a corrective Leg B, that can search for resistance and a turning point around the 2587 level of a former swing high.