If the market will break through the resistance line, then at this place on the chart, we will see the process of forming a tapering triangle (4). If the market can not break through the resistance line, then we will see the movement of the index down. I think we will see the formation of a tapering triangle (4).In this case, upon completion of detail (A) wave (B) will break through the resistance line of the channel and lift the market up.
The moment of truth. According to my observations, all the movements in the stock market consist of five or three waves. Now turn your attention to this chart. It consists of three waves. Waves (1) and (3) are trends.Wave (2) is an expanding triangle.Wave (3) is completed. We are seeing the development of wave (A). The wave (A) goes down parallel to the resistance line of the big downward channel. It's simple.