I've included a daily SPX chart similar to the one I posted for SPY yesterday. Looks like MACD shows a cross and with that I would expect price to turn lower and possibly fall within the trendline. 1040 looks like a reasonable target. Of course it's always possible a major sell off could occur smashing price right through that lower trendline.
As for the count, I updated the one from this morning to show that we are still in a possible 1-2 1-2 configuration. Wave ii red appears to have begun near the close.
I am generically (degree wise) labeling these waves for now. Suffice it to say, I am expecting a 3rd of a 3rd to occur something early next week.
Near term, 1040 SPX and 104 SPY are the targets that I'll be watching. MACD appears to be consistent at this point, so I will assume that today's cross will continue to show that price will fall further.
The trannie's hammer did not see a follow thru confirmation for a reversal and a cross occurred on MACD as well. So I would expect some more selling on the trannies next week.
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