Today’s Low Seems Important

I am not going to repeat how I came up with the pivot on the 5-minute chart, as I explained it in the update this morning.  But, for now, it seems to be holding.

Now, since this would be a bottom in a b-wave, ideally we should be seeing a clear 5-wave structure developing off the low.  And, I would assume an appropriate sized wave 1 of the c-wave would take us back towards the 6100SPX region.  So, that is what I will be seeking over the coming days to make this a much higher probability.

The alternative path now is presented in purple on the 5-minute and 60-minute SPX chart.  This would present us with a 1-2, i-ii downside structure, as shown on the 5-minute chart.  And, a break down below today’s low will open that door in a big way.  

For now, I am going to give the market a little bit of room to provide us with that 1-2 upside set up.  However, I am keeping this potential on a tight leash.  A break down below today’s low will have me switching gears rather quickly.