The SPX took out the 2954 level I was watching and as previously posted the alternate count once this level was taken out is now the primary. I cannot count five waves up off the March 2009 low so the running flat/combo corrective count for wave (4) makes the most sense.
So far buyers stepped in at the lower end of the channel. We'll see if a hammer candlestick prints by the end of the week as well.
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Here is a close up of the possible corrective options that could play out if we see a battle between the bulls and bears. Wave a of Y may have completed, with wave b of Y in progress.
A running flat has wave c of Y either falling short of the wave a of Y low or lower but not below wave w.
Or wave c of Y takes on a triangle after wave b completes. Let's see what happens.
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