View: SPX: Follow Up of the Short Term EWP | The wave trading

Sorry but today I have personal matters to take care so this is just a brief update.

The US presidential election euphoria vanished abruptly aborting the scenario of a larger bounce with an Ending Diagonal or a more time consuming sideways Triangle.

I modify the count of the corrective move from the September 14 high from a Double Zig Zag to a Triple Zig Zag. The end result is the same but with a TZZ. I can include two potential short-term scenarios from yesterday´s hod: either an impulsive decline (blue count) or a Zig Zag (black count).

If this count is correct price will unfold either an impulsive sequence or a 3-wave down leg. One of these two options should establish the end of the correction.

With yesterday´s sell off we finally have price inside the Target Box.

We have an eod print below the September 4 reaction low = 1396.56 and the 0.382 retracement = 1395

The trend line in force since the October 2011 was tested but not breached, but I doubt it will hold the next down leg.

Yesterday´s strong selling has pushed TRIN into oversold territory hence odds favor a rebound attempt for today. If this is the case, it should fail in the range 1411 – 1416

Given the positive divergences of breadth indicators and since price is already inside the potential target range of a multi-week/month bottom we have to be extremely vigilant in order to detect the move that is expected to complete the EWP

The McClellan Oscillator seems to be unfolding a contracting pattern that could be the springboard for a bullish thrust if the sequence of higher lows is not aborted.