Once the market broke its standard Fibonacci Pinball structure over a week ago, it told us rather clearly that we will be seeing whipsaw action. And, the market certainly has not disappointed in that regard. Moreover, I don’t think we are yet done.
I am not going to address the action in the futures, as the structure is a bit different. But, the one factor that I take away from the futures is that the pullback today seems much more like the [b] wave I am presenting on the SPX chart. And, if we drop once more without completing 5 waves up off today’s low, then I am still viewing it as more of the [b] wave as long as we hold the blue box support below.
Now, I am not going to present a detailed and complex analysis, as it is not necessary right now. I can distill this analysis rather simply.
As long as we hold the upper blue box support with the [b] wave label, then I think we are developing the a-b-c structure we spoke of regarding wave 5 to higher levels.
However, the alternative count is a variation of the prior blue count presented before. This time, the alternative has an expanded b-wave structure within the wave 4 in blue. And, should we break down below the upper blue box support, then I will have to again give this more serious consideration.
I sincerely hope the brevity and clarity of this analysis makes up for yesterday. (smile) But, please keep in mind that volatility is likely with us to stay for quite some time.