The S&P 500: What Can Happen After An ABC Correction Move?

After a deep pullback during the first two weeks of September, the S&P 500 price is finally finding a strong resistance area. We can clearly see that the move came down as a classic wave of ABC correction. Let's see what happens next.

Short Term Technical Analysis

In the daily chart price tested for several days 50 EMA and failed to break and close below it.

In the 4-hour chart, you can see a classic ABC correction wave, which was stopped by the daily EMA 50. We need a break above 3443 for a bullish continuation move.

The indicators are above the midline keeping the bullish momentum strong.

If the price is to maintain bullish momentum, the first critical resistance could be 3526 and the next 3587.

A break and closing of the price above the high level of the previous structure could open the door for more upside with extended targets of 3669 and 3769.