Early stages of consolidation

The market continued lower today, but so far has not been able to break below Friday's low at 2179.50 SPX. That support followed by 2172 SPX are still the two signal levels that I want to see taken out in order to confirm a local top in blue wave i of 3 and the start of a corrective retrace in blue wave ii of 3. Assuming that price does follow through below those levels of support, then I will be looking for blue wave ii to reach at least the 50 day SMA at 2129 SPX if not the .382 retrace at 2115 SPX.

Otherwise, I have added the more immediately bullish count that Avi posted earlier to my chart in red, where we have a i-ii (i)-(ii) i-ii start to wave 3. I would begin to consider this count more seriously if we broke out strongly above 2196 SPX, but for now I am heavily favoring the blue path. Below 2164 SPX further reduces the likelihood of the red count and it invalidates below the August low.

$SPX - Micro - Aug-16 1343 PM (1 hour)
$SPX - Micro - Aug-16 1343 PM (1 hour)
Garrett Patten is a senior analyst at ElliottWaveTrader covering both U.S. and international equity indices as well as stocks.