An Exercise In Patience

With the manner in which the market has been moving back and forth in a corrective structure this last week or so has certainly provided us with an exercise in patience, especially since it has not yet tipped its hand as to how this correction will complete.

And, if you noticed, I am speaking of it as a “correction” for now because there is no indication that a major top has yet been struck.  We have no clear sign YET that a major ending diagonal structure has completed, so I have to start leaning a bit more towards the blue count at this time.

But, even so, I still have no completed corrective structure for even a blue wave 2.  In fact, there are still several ways this can take shape in the coming week or so, and I have added one more to the attached 5-mintue SPX chart.

As you can see, I have added a i-ii to the chart, which means there is SOME potential that a 1-2, i-ii set up is brewing.  Unfortunately, I cannot say that this is a high probability at this time, as it looks more like a diagonal in play.  But, there is some potential I am seeing for the 1-2, i-ii, so I have added it to the chart.   Should we break down below the top of the support box below, then it would significantly increase that potential and project down to the middle or lower end of the support box.

Another alternative I have noted over the weekend is the more expanded (b) wave presented in yellow.   But, I cannot say that the rally structure off the low is clearly indicative of that alternative either.  

So, again, it leaves the most likely path (at least at this time) being the ending diagonal for the (c) wave down.  And, as long as we remain below 7530SPX, we have that and the alternative 1-2, i-ii pointing us down sooner rather than later. Should we break out over 7530SPX, then the alternative in yellow takes hold.