Close, But No Cigar

As I outlined yesterday, if the market would have broken down below the [iv]/1 low, then it would increase the potential that the c-wave to the downside would be taking shape as an ending diagonal and pointing us down to the lower end of the support box for wave [2].  And, today, the market dropped right down to that level, and has, thus far, held that level.

So, the question still remains an open one as to which path the bulls will choose to take in the coming days.

From a micro perspective, we may have a completed wave 2 in the c-wave of the deeper wave [2] potential, wherein today’s rally off the low was a c-wave of that wave 2.   However, that same rally structure can be wave 1 of the c-wave of wave [v] of wave i in the more immediate bullish path as well.

For now, nothing has really changed in our analysis.  The bulls remain in charge as long as we remain over 5674SPX, and we are awaiting the 1-2, [1][2], i-ii set up outlined on the chart, which would strongly suggest a break out next towards the 6150-6200SPX region.