S&P 500 broke to new all-time highs which has been expected based on the Elliott Wave triangle placed in a fourth wave. We have seen a nice and strong push to a new high. This was a final thrust higher to complete extended blue wave three so current bearish turn is a new correction. Ideally wave four will drop down to the 2230 area.

S&P 500, 4H

Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3. They appear to reflect a balance of forces, causing a sideways movement that is usually associated with decreasing volume and volatility.

Basic Triangle Pattern: