$SPX: Alt Local Count

We have lost the contraction in price that made the ending diagonal (here) look good yesterday. That does not necessarily mean that we should not still expect higher prices in the short-term. It’s possible that this is a “flat” for Orange 4 instead, like this:

SPX

If this is right (it could be wrong) the difference between this and an ending diagonal is that we will go up one more time in 5 waves instead of 3 (ending diagonals are composed of 3-wave moves, and this alt would be a standard impulse wave).

I remain short/long, leery of the volume of imminent top calls here, so will stay braced for short-term upside as a precaution.

If we move down significantly, I will need to reassess and the likelihood of a top increases, especially if we take out some of these prior lows to our left.


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