S&P500 ~ upside correction of last weeks decline continues before next wave lower...




The last short term update showed that one more push lower was needed for a five count to complete wave-i. Visually this would have made the five look better.

 Today's corrective rally that started late Friday gapped up this morning and continued to the 61.8% Fib retrace of the entire drop from the wave (b) high.

 It is still possible that today's rally is wave [4] and another low would be [5] of wave-i because nothing has been violated yet, other than appearance.

 The blue shaded line shows where wave [4] can't go and price came right to it and reversed.

 The other observation we make against wave [4] is that wave [2] retraced a Fib 78.6% of [1]. Since [2] was this big we would expect [4] to retrace no more than 38.2% of [3].

 For these reasons we've labeled the chart as having completed wave-i on Friday with today being wave-ii and watching for confirmation that wave-iii down is under way.

 The only alternative would be if the market attempts another rally meaning wave (b) is still working and wants to be more complex.
Follow the Trend
and
"Trade Safe"

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