S&P 500: Temporary Correction Seems Near Completion; Ending Diagonal Suggest Higher Prices

E-mini S&P500 has turned nicely lower in the last two weeks after a break beneath the trendline support connected from end of February. We see current decline complex, so ideally market is just in a temporary pullback that can be coming to an end now after that retracement back to 23.6% and to former wave 4). It appears to be ideal zone for a continuation higher now, especially if we consider an ending diagonal in wave Y). that said; we think that price will resume its uptrend this month for 2104 high.

S&P500, 4H

The ending diagonal is a special type of motive wave that occurs primarily in the wave 5 position when price has moved too far and too fast. Some ending diagonal triangles appear in the C wave of an ABC correction. In all cases, the ending diagonal terminates the move of larger patterns.