In the last update, I wrote:
While it's fun to speculate, in reality, this remains a situation with multiple complex options, including WXYs and potential expanded flats at two different wave degrees. In such situations, I prefer to focus on trend lines and just let the market show us which route it's decided on.
The following chart was then attached:
SPX fell through black straight down to the blue horizontal. And as of the time of this writing, ES futures are indicating a big bounce off the blue horizontal, effectively demonstrating the value of this approach. Note the WXY is a corrective pattern that preserves the larger uptrend -- but the first resistance line is black, so bulls will need to sustain trade above that to prove their mettle. Conversely, bears will need to sustain trade beneath the falling blue trend line to prove theirs. Not much else to add beyond that. Trade safe.
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