S&P500 ~ wave (b) upside correction completes ~ wave (c) down begins...




Last week's update was counting the rally over the past week as wave (b) which was correcting the initial five wave impulse decline from the ATH labeled as wave (a).

Confidence in this count was helped over the week by a shrinking advance/decline along with volume and momentum divergences. And now (finally) with today's large decline we have price confirmation.

Wave (c) down should be under way now which should form a five wave structure. Price still needs to move below 2820.00 but once it does we should see a move to or below 2720.00 before completing wave (c) of a larger wave [a]. 

It's possible that the market could drop in a large five waves down from here to the December low.
Our labels reflect that the wave formation will be a double three which is why we label at the "minuet" degree for now. However, we could change this to "minute" degree if price gets carried away and forms a single "zig-zag" down to our expected targets.

Follow the Trend
and
"Trade Safe"

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