E-Wave for the S&P 500 Index

[RCKS]

"....the best fit right now is that SPX is undergoing a fourth wave correction, which is either nearly complete or will require a trip toward 6160-72......"

http://www.pretzelcharts.com/

Last update noted that SPX had reached resistance and might react to that, and it did, dropping fairly steeply over the near-term yesterday.



Over the intermediate term, SPX is still above red trend support:



And over the near-term, SPX appears to have formed a b-wave high -- the main question is whether that b-wave subdivides as a wxy, in which case the lower target on the chart below become appropriate. If it didn't subdivide, it could make a new all-time high fairly directly:



In conclusion, the best fit right now is that SPX is undergoing a fourth wave correction, which is either nearly complete or will require a trip toward 6160-72. In the event that lower zone were broken substantially, then we might need to reassess -- but for now, the fourth wave appears to be the most parsimonious explanation. Trade safe.