The SPX breached some resistance levels today. Most of the day was biased to the upside, with very small down drafts in between. However, all of this happened on extremely low volume. The lowest we have seen since the holidays. Despite the low volume, the internals were pretty firm. Just about 10:1 up at the close on the NYSE.
After reviewing possible counts, I have now come up with 3 scenarios. Actually, all 3 of the scenarios are pretty much the same, except the degrees of the waves are slightly different, thus they have different targets.
First, I'll give the bearish one. This count has been pushed to its limit.
It suggests that today HAD to be the top. If we go any higher tomorrow, I will cancel this count out. Tomorrow needs to be down for this count to be right.
The second count, is the one I favor the most right now. It seems the most logical. It is on the Nasdaq.
This suggests that we are in Minute wave [ii], and not minuette wave (ii). Since wave [ii] is one degree higher, it will be slightly more powerful, and so far, it has been. As you can see, we are sitting right on the 50% retracement line. It could go higher, but it could also turn back south at any time.
The third count is another one that I do not favor much.
It suggests that we are in Minor Wave 2. Minor Wave 2 is stronger than wave [ii] and wave (ii). However, to me this doesn't seem right because Minor Wave 1 is very small in this count. But it could still be right, but I wouldn't count on it for now.
The Nasdaq count seems the most logical to me like I said earlier. But with it being OpEx week, the market will do crazy things. But hopefully, we will have our answer within the next few days. The key pivots to watch for are a break above 1100 and a break back below 1085. Both these pivots will decide the next move.
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