The intra-day move in the SPX has formed a possible triangulated shape which is consistent of wave 4 or B. At this point, the only wave that would be close to the bearish sentiment would be that of a sub-wave 4. Overnight the ES has made a lower price, but by open price were bullish to unchanged. As the day progressed we had price in the ES move lower but with no new low. This movement preserved the SPX's low made yesterday. With this break we could have a possible 5 wave structure and should see a rebound back to the level we are at now. Judging by this analysis, it is in my opinion that we should be range bound for a few days.
Aside from EW analysis, our indicators are still in a bearish state and I look for high probability of downside results.
SEN: Bearish
ST: DOWN
PA: DOWN
Remember that EW is only for us to view possible ways price might move, in a scenario that best fits our technical analysis, but should not be used as the only means of analysis.
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