SPX Update: Bounce

Last update speculated that the market was in "bounce or break territory," and bounce it did, holding the support zone we'd discussed several times prior.  This creates an interesting structure wherein the current bounce could either be a large, higher-degree 2/B, or a small, lower-degree fourth wave:

On the chart above, for ease of viewing, I simply labeled both options as "2/B?"  The following chart helps illustrate how it might play if it's the lower "2/B?" on the above chart:

Now, again, please keep in mind that the above is not a "prediction" per se, it's simply one path the market could take if the current bounce is a low-degree fourth wave.  If SPX sustains a breakout over the purple trend line, then the red horizontal may come into play next, and the rally could go on to later form two legs up.

In conclusion, bulls did manage a bounce from support, but whether this is to be short-lived, or a larger corrective rally, remains to be seen.  We'll see how bulls manage the upcoming resistance zones.  Trade safe.