Last update, we talked about the expectation of one more wave down for SPX, and that happened immediately -- but the wave was a bit shorter than one would normally see. This means one of two things:
1. Either there is still another wave lower needed
2. Or Wednesday's low marked the end of what's called a "truncated c-wave" (a c-wave that fails to travel the usual distance)
Today will thus be a test for both bulls and bears. Bulls will still need to sustain a breakout above 2676 to get out of the near-term woods (we all know there are bears in .the woods!).
Last update suggested that because the red trend line hadn't been tested yet, it would possibly be tested at a level below 2676. It appears that will happen today:
In conclusion, there's still resistance overhead, so it's entirely possible that today will bounce and stall at resistance. If bulls can instead sustain a breakout, then the uptrend will remain intact. Trade safe.
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