Chart of the day

SPX is reaching the top of the consolidation channel and a wedge 4800. To extend higher, we must see a confirmed break above 4800 to have the fifth upside wave extension even higher, and the fifth is not finished with this high.

A rejection here does not invalidate the fifth wave it just means we will have a swing pullback. We need to see a clear confirmed break below 4600 for the short trade swing entry medium-term to be justified. Until we see a confirmed break above 4800, we will be in a swing range and can only trade swing short and I expect a pullback here, especially in the case of a short-term break below 4740.

Short trades could be opened here with a stop just above 4800. Long trades should be opened only upon a confirmed break above 4800. The instrument is making a key resistance test.