Red count remains in control

While the SPX fell just shy of the ideal 1953 - 1961 SPX resistance target for red wave c of (iv), it otherwise followed expectations perfectly with a strong drop from today's high that quickly took out Monday's low.

This action should confirm that we are in red wave (v) of c targeting 1867 SPX next. For overnight traders, 1896 ES is current resistance that should hold in order to maintain pressure down going into tomorrow. A sustained break back above there would be the first warning sign that a potential local bottom has already been struck.

As for the blue triangle count, it remains technically valid still, but only as a secondary count until we start taking out resistance above, namely today's high.

$SPX - Micro - Jan-13 1402 PM (1 hour)
$SPX - Micro - Jan-13 1402 PM (1 hour)
Garrett Patten is a senior analyst at ElliottWaveTrader covering both U.S. and international equity indices as well as stocks.