Bulls fumbled, bears on offense

With the SPX breaking below the 2064 SPX level cited in yesterday's market update, the red count took the drivers seat today and price drifted lower to reach the initial target region for red wave iii of C at 2043 SPX.

We may see a small extension lower to reach the next fib at 2038.75 SPX, but otherwise the pattern suggests that a bounce from this region should materialize as a wave iv of C in the red count. That bounce should take price back up to 2056 - 2064 SPX in a corrective 3 waves before turning back down again toward the 2031 - 2024 SPX target region for wave v of C.

I am not going to be considering any near-term bullish counts at this time unless price can impulsively clear 2064 SPX. Until then, this pattern is pointing lower still.

$SPX - Micro - Aug-20 1345 PM (1 hour)
$SPX - Micro - Aug-20 1345 PM (1 hour)
$SPX - Intraday - Aug-20 1345 PM (3 min)
$SPX - Intraday - Aug-20 1345 PM (3 min)
Garrett Patten covers both U.S. and international equity indices as well as stocks for ElliottWaveTrader.