Something Is About To Happen

With the market hovering just below the 1.236 extension of yellow waves (1)(2), there are several options I will outline.

I will start with what I view as the primary count presented in yellow.  This suggests we are in the c-wave of wave 5, and as long as we hold over the pivot in a corrective fashion, I will maintain this as my primary and look for the next move to the 6845ES region to complete wave (3).

Of course, I have to reasonably track two alternatives.  First, since we have rallied to the 1.236 extension of waves (1)(2), we have to consider that we may be completing the c-wave as an ending diagonal.  You see, wave (3) of a diagonal targets the 1.236 extension of waves (1)(2).  And, if we break down below the pivot in a CORRECTIVE manner, then I would move to the alternative presented in the dark green, which outlines the path for a diagonal.  This would maintain an expectation that the corrective pullback in wave (4) will attempt an overlap into wave (1) before rallying in wave (5).

Now, if we see an IMPULSIVE break down below the pivot, then I will have to assume that we have topped in a b-wave rally, with the impulsive drop being a c-wave, which will, at a minimum, retest the 6550SPX support region.  But, clearly, if we break that support, we can extend down to the next major support in the 6360SPX region.

But, as I started the update, as long as we remain over the pivot in corrective fashion, I am following the yellow path.