S&P 500 - Ending diagonal might be developing

Failure to break below 1,067 Friday and the following break above 1,077 has delay the top for now. The possibility for a Ending diagonal fits this picture well, as it "buys" more time, but the outcome will still be the same. A top should soon be seen, but as the ending diagonal progresses it could reach the 61.8 % retracment target of the decline from 1,130.97 to 1,011.52, which comes in at 1,085.34, before setting the stages for wave 3 down. Of cause wave 3 has to develop, but do remember, that wave 3 is normally the most powerfull of the waves.

A break below 1,069 will be the first indication, that the top is in place and confirmed by a break below 1,058.