Thursday Scenario

So what we are looking for is for the 60min to tell us where we are in terms of a continued push down for the daily.  Right now our daily is in a "Bearish Position".

1st option - We definitely need to see a lower low tomorrow to finish of what could be a wave C of 4th wave.  Then up 5 waves to new highs to complete the 5th wave of this final leg. By this happening we would expect the Stoch. in the 60min to move up to the overbought level.  To confirm the 5th wave we would need to see the daily stoch. at a divergence with daily prices.

2nd option - We definitely need to see a lower low tomorrow to finish of what could be a 3rd wave of wave 1.  Then a 3 wave move up or a sideways move to finish off a 4th wave of wave 1 then down again with a 5 wave pattern maybe around the 1412 or 1402 range on the SPX.  This will give us wave 1 because we would then find the Daily stoch. at or near the oversold level and the 60min stoch. hovering around the oversold range aswell.

Option 1 = green arrow up to new highs.
Option 2 = Magenta arrow down to new lows.

Key will be what the 60min action does for the Daily charts and its indicators.