With the June 6th low being broken we can now rule out any 1-2 combination in EW patterns to the upside and with that a wedge count that possibly count as an abcde. Rather the ABC up for a ii or B wave blue is still in play. The market today moved impulsively and an A=C scenario would find prices stop at the 1570 target. But one can count a full 5 wave down from the highs made on June 18 so a rally should pull prices back. Only then will things become interesting due to the fact that it could be a 3rd of 3rd down or a C wave of C down. As I write this post, Zero Hedge posted an article on Circuit Breakers. Looks like markets might be jittery. The gap today might need to be covered on the SPX chart so a rally to the range of 1630 should fix that.
Therefore:
Bulls need to see a 5wave move up and Bears need to see 3 wave move up.
Mid-Term: Down
Short-Term: Down
Indicators are agreeing with each other to the downside so a continued short is recommended.
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