Trend is down

What we experienced in just 2 days is a leg down of 52 points on the $SPX (1,687 - 1,635). This leg subdivides in 5 smaller waves in the hourly.

At 10:00 am today, $SPX hit oversold on the hourly and the shorts covered - this down leg was over!

The market spent the rest of the day recovering from the drop, as expected. The retracement today was 38% (20 points), which means that the market may retrace even higher tomorrow. 

When the market turns downwards again (second leg down not confirmed at this point), it will hit as low as ~1,600's, finding support at a level that previously acted as resistance (April high).