Gun to the Head, I Would Guess This

Though I will remain hedged against terrible outcomes for a while (just in case), here is how I am inclined to interpret the last two days’ price action.

Yesterday was arguably a leading diagonal. And today, a fairly clear 3-wave decline. The top of the orange box is where purple “c” = purple “a,” giving the decline “equal legs” (so far). That also happens to be the 50% retracement of the advance made by the leading diagonal yesterday.

So long as that holds, it does look good as a “1-2.” And so I am inclined to believe that it is, at least for the time being.

SPY

I do hope we resolve to the upside and enter a trending market soon.

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