S&P500 has been developing ascending triangle pattern(see the chart in blue), which is bullish. It been moving in a very narrow range(1131 to 1150). It's about time to break from it. I don't know which direction ,but market is going to break out very violently. If I want to pick; I would say, if by Friday S&P500 fails to get above 1150; there is 40% chance that we are going to witness a very violent move lower.
On the Elliot wave analysis we are in sub-wave (2), if S&P500 moves below 1100; I can say for sure the sub-wave (3) is initiated. On the other hand if S&P500 gets above 1150 and stay above it for a 2 days it will shoot for 1170.
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