|SP500 4-hour Potential Triangle|
Due to the light volume, we think all that happened on Friday was that the minute-d wave (circle d) became slightly longer in time, and that was the reason for the three waves down on Friday. We think the purpose for this was related to the Dow Jones Industrial Average : the Dow did not have the upward overlap on the A wave on Friday. It only did that today, validating potential triangles now in both the S&P500, and in the Dow.
We did count a clear five-waves down in both indexes from the potential wave minute-e (circle e), and so further downside movement of some type is expected. You'll note there are more downward overlaps, light volume, and price is moving sideways : all still characteristic of a triangle.
Time will tell.