It appears that SPX has stopped declining so far at the hourly Cycle Bottom support. It may now be challenging the Broadening Top trendline at 2045.00 from beneath. This may be a sub-Minute Wave (iv) of a Minute Wave [iii], which suggests a further decline to either the 50-day Moving Average at 2007.51 or to Round Number support at 2000.00.

So far the formation consists of what appears to be a-b-c rather than 5-wave declines. Wave [i], as it appears thus far, is 48 points in length, while Wave [iii] is 60 points. This is only a 1.25 to 1 relationship, which does not comport with a crash. It is yet indeterminate whether Wave [iii] will retain 3 waves or expand to 5 waves.

I would like to see Wave [iii] expand further to at least 2000.00. This would then set the stage for a much stronger decline with Minor Wave 1 ending well beneath 2000.00.

There are a couple of alternate views, which may be introduced as this decline develops even more.

All the best,

Regards,

Tony

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