Playing Around Over Support

I can’t say much has really changed with today’s action. The market made a slightly lower low but still held over support. And, as long as we hold over support, the yellow count is still quite alive and well.

But, in order to make the yellow count a much higher probability, we will still need to see a 5-wave rally back towards the highs for wave i of (v). Until that happens, this can still become quite precarious and see a break-down of support.

Clearly, a break-down below 7625SPX opens the trap door for the (c) wave decline, and a follow through below 7570SPX will make that our primary count, placing us in the 3^rd wave down in the (c) wave.

So, for now, I am still maintaining the yellow count as the primary, but I would need to see a 5-wave rally for wave i to make it more convincing.