SPX Update: A Couple Near-tem Options

Last update expected higher prices after a morning dip:

I suspect SPX will decline at the open, toward 84, and potentially as low as 80-81, before rallying back up.

Turned out I was off by a point, and SPX declined to 85 before resuming the rally.

We've now reached a somewhat odd inflection point, inasmuch as I don't see much potential for a long-term top here, but I do see potential for two possible near-term corrective structures.  I've drawn a chart to show the potentials, as well as to discuss the relevant levels for each:

While I don't see much potential for a long-term top in the charts, Dennis Gartman did just announce that he was finally turning bullish -- so we should be aware that a sudden crash of at least 2590 SPX points is not entirely out of the question.  ;)

In conclusion, basically, as long as the zone near yesterday's low holds, then we have to presume bulls still have the ball across all time frames.  If we instead see a sustained breakdown at the blue trend line on the chart above, then we'll have to consider that perhaps red wave 2 is still underway via the blue ABC.  Trade safe.