S&P 500 has turned down two weeks back and fell slightly beneath 2000 for a second time in December so we assume that bulls are not ready to break higher just yet. However, we are still observing a bullish pattern but it's a triangle it seems, currently with wave (D) at the upper side of a contracting range where temporary resistance can be found. Based on incomplete contracting triangle we may have to wait a few more days before market will break higher, because wave (E) is still missing.
S&P 500, 4H
A Triangle is a common 5 wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. Triangles are overlapping five wave affairs that subdivide into 3-3-3-3-3.
Basic Triangle Pattern :