I cannot help but conclude that the SPPX made a very shallow Master Cycle low yesterday. Today’s move gives it away, by rallying to the trendline, taking out Monday’s high, but not the trendline.

The shallow decline only went down to match the July 14 gap up above the trendline at 2157.88, spending 34 market days above that level.

The Elliot Wave structure counts as a Leading Diagonal, made up of a set pf 3 a-b-c overlapping declines. The Master Cycle low yesterday was day 262, 4.3 days above the average 258 days.

It also clears the way for a very powerful Wave (3) that may achieve the Target set out by the Orthodox Broadening Top.

The main issue is that the SPX doesn’t rally above its August 15 high at 2193.81. The Cycle Top resistance at 2192.63 gives some indication that it may not.

Regards,

Tony

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