We talked about the primary ending diagonal pattern forming on SPX500 a couple of weeks ago. It consists of primary waves ①-②-③-④-⑤ with the last wave currently in development.
The particular structure suggests that the uptrend could end soon with the conclusion of primary wave ⑤.
A closer look at the chart can help us pinpoint the possible completion level of the minor impulse wave 5, which is part of the last intermediate wave (C) of the “three” type correction seen in diagonals.
As per our chart, we can see that after completing minor waves 1,2,3 and 4 we are now expecting the final leg labeled as ⓥ. The wave hints to another ending diagonal pattern consisting of subminuette waves i-ii-iii-iv and v.
Since wave iii is completed, we could see a slight correction to wave iv near 3080 and then we could possibly see a subminuette zigzag v ending this primary pattern near 3104.5.