As I have been highlighting this week, the nature of the next drop is what will likely provide for us strong indications as to whether the market has yet completed its wave , or if we have a [c] wave decline to come to complete its wave .
With today’s decline off the all-time high, we have what can count as a 5-wave micro structure. While that can still be an a-wave for the yellow wave iv, we will need to see the market complete 5 waves down towards the 3800/20SPX region to fill in a solid 5-wave structure for wave 1 of the [c] wave down.
But, that means that anything less than that will have us move towards the yellow count. So, should the market now make a higher high, I would have to view that as completing wave 1, as currently presented in yellow. Moreover, should the market only complete 3-waves down into the support region below, then that would be counted as wave iv of wave 1, and we would then have to view wave  as completed, and prepare for wave 3 of  to take hold in the coming weeks.
So, as it stands right now, if we are indeed going to still see a [c] wave down towards the 3600SPX region, then we will need to complete 5-waves down towards the 3800-20SPX region. Anything less than that, or if we should make a higher high, then we will have to prepare for wave 3 of  sooner rather than later.