Stocks are breaking higher, with E-mini S&P500 trading above 2300 area so it appears that market is not ready to make a bearish turn just yet. In fact, we see a potential big bullish impulsive wave III in play that can be headed even up to 2400 area while market is trading above the lower channel support line.
S&P 500 Daily Chart
On the 4h chart of S&P500, we can see that price broke out of a triangle formation nearly three weeks back which means that index is now in a final leg up within a higher degree wave 3. As such upside can be limited in the near future, once we have five sub-waves up within red wave 5) of 3.
On the updated chart we can see that price seems to have found a base at the 23.6 Fibonacci ratio, and current bullish rally may be the final wave 5, which can see a potential top and a turning point lower around the 2366 area, where measurement of equality comes in play ( wave 1 equals wave 5).
S&P 500 4 Hour Chart