Bounce assumed corrective until proven otherwise

The SPX continued to bounce today into the upper end of resistance cited for wave (iv) of c under the blue count at 2035 SPX. While we have no indication on the micro yet of a local top in place, if that resistance holds and price starts to head back down impulsively tomorrow we can view it as the start of blue wave (v) of c with 1960 SPX as a potential target.

Otherwise, as noted this morning, above 2035 SPX would start to look too big as a 4th wave, and instead would argue for another b-wave. That path has been added to the chart in red, where resistance for red wave b is between 2055 - 2070 SPX (the .500 and .618 retrace). Either way, until I see solid evidence of otherwise, I am not assuming that wave 2 has completed yet and believe that we still need one more low.

$SPX - Micro - Jun-28 1336 PM (1 hour)
$SPX - Micro - Jun-28 1336 PM (1 hour)
Garrett Patten is a senior analyst at ElliottWaveTrader covering both U.S. and international equity indices as well as stocks.