SP 500 ~ wave four correction continues with lower prices likely before completing...
Late Friday we saw a drop to a new low for the move down from the high that hit 3212.75. This was the first target as this was the 4th wave low of the lessor degree which is the common target after the termination of a five wave rally....indicated by the horizontal dashed blue line. The chart is labeled showing that Friday's low also completed a five wave pattern down from the high that came close to the 27.2% retracement of the previous wave [iii]...also a common wave four target. Since the decline formed five waves and since a correction can't be made up of a single five wave move we have labeled it as wave (a) of wave [iv]. We can now do a process of eliminations and assume that wave [iv] will eventually turn into a 5-3-5 "zig-zag" formation. Today's rally should be part of a retracement of the decline that is labeled as wave (b) that when complete will lead to another 5 wave decline as wave (c) of [iv]. This drop will most likely break below Frida...