Let’s look at S&P500 and its 4h structure. S&P500 is trading 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&P500, as only three waves are visible. We still lack waves four and five, before a bigger three-wave pullback could come in play.

S&P500, 4H

Ideally price will touch region near 2540 level for a bigger wave III.