WHAT IS FORMING

I believe what is forming here is a triangulation pattern that only develops into a continuation.  Although Im getting ahead of myself here and not complete we can see clues from developing 3 wave patterns.  Not so evident on the SPX due to its unrecognizable structure but much more evident on others. We need to break lower (at least break a possible triangle pattern development) to void this pattern and give a good indication that the bearish outlook is the sentiment to go with and that higher highs are done.

SPX

XLF