A little pressed for time tonight, so I'll try to hit the highlights. The trading was a little choppier today than we have seen lately. For the most part the SPX continued the small rally from yesterday's 2380.52 low. But in interesting fashion. I count a 5 wave sequence from that low to 2431.03. Appears to be a complex corrective wave from 2431.03 to 2385.83, then another 5 wave sequence from there to the day's high of 2466.97. In other words three waves from yesterday's low to today's high. I would expect the wave to unfold in 5 waves, which opens up some interesting possibilities. Either this move higher ha not completed, or yesterday's low was but a first wave instead of all of Wave 3 from the 3393.52 high. Or potentially more downside to come.
For now we'll keep an eye on the levels mentioned yesterday:
A move above 2553.93 would likely mean at least a short term bottom is in.
Adjusting for today's move higher, support for a final wave of this move becomes 2290-2135. So a move below 2135 would mean there is more work to be done to the downside. If the SPX moves into the 2290-2135 range, 2466.97 becomes the level to look for a move higher.
To expand on the three waves up from today. If that holds true, the diagonal on the chart would likely be broken to the downside. Thinking in terms of the down waves I spoke of the other day, it means today's high would be the completion of 4 of 9 waves.
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