The wave structure at this current time is made up of 3 waves, which suggests a corrective move to the upside and should continue lower as we indicated below. The price of the support however is still to be determined but could push to 1900. The current intra-day move has closed still on the bullish side, so shorting would have to come in when the 60min stochastics turns over to the downside. I am looking at all chart time frame for any positive divergences to tell me if a short or mid-term bottom is in. Once we make a lower low that can be counted as a 5 wave decline, we can say there is a high probability that a move to the downside will eventually come. But as wave 2 is concerned it can retrace close to wave 1's starting point (which is the All-time-high) for the SPX.
There is also a possibility that the 5 wave decline has finished and an ABC pattern for wave 2 is or has developed. We won't really know till we see the attitude of the next price move. A massive price move to the downside will show wave 3 on the way. This can give us the opportunity to profit large so keep on top of this scenario. With volatility in price pattern the by product is the inability to count the waves properly but a good thing we have our indicators to help us in that department.
MT: DOWN
ST: DOWN
PA: DOWN
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