Potential bottom - Market Analysis for Sep 11th, 2018

After the initial move lower this morning that came close to retesting the low made last week, the market managed to turn strongly back up, eventually exceeding yesterday's high. Therefore, with a higher low and higher high today, we have the initial indications of a near-term trend change and a bottom in place for this pullback off the August high.

If a bottom is indeed in place though, then the next step toward confirming the start to wave c of (y) higher would be filling out a larger 5 waves up off today's low as wave 1 of c. Price should reclaim 2900 in doing so before consolidating again in wave 2 of c.

Otherwise, if price is unable to produce a clean 5 waves up off today's low, which a break below 2885 SPX would warn of, then we would be left with either a diagonal structure developing off last week's low, or just another corrective bounce setting up further lows. Therefore, seeing further upside follow through tomorrow should be important.

$SPX - Micro - Sep-11 1225 PM (1 hour)
$SPX - Micro - Sep-11 1225 PM (1 hour)
Garrett Patten is a senior analyst at ElliottWaveTrader covering both U.S. and international equity indices as well as stocks.