Still not a confirmed top

The market traded sharply lower this morning, breaking below yesterday's low and then finding support near the May low. Since then, price has staged a strong recovery that retraced almost the entire drop, so far leaving us with only 3 waves down from the current May high.

Therefore, although price broke initial signal support to indicate a top in place for wave (b) of iv, the lack of follow through today still leaves us without clear confirmation of that. Because of this, until today's low is taken out, then potential for one more high in red wave 5 of a slightly larger c-wave of (b) into the 2410 SPX region is a possibility.

However, as long as we are below yesterday's high at 2400 SPX I am going to lean more toward the blue count with a top already in place for wave (b), but again, we need a break back below today's low to really confirm that.

$SPX - Micro - May-11 1304 PM (30 min)
$SPX - Micro - May-11 1304 PM (30 min)
Garrett Patten is a senior analyst at ElliottWaveTrader covering both U.S. and international equity indices as well as stocks.