Today I really don't have anything that can be considered of "added value" to what I wrote yesterday in my technical update.
Therefore I maintain the short-term scenario of a potential multi day rebound with a target in the range SPX 1340-1353, well clearly if price does not breach Friday's lod.
Unstable European political/social/economic environment is increasing the fear and uncertainty.
There is too much instability in the wave structure and the large intra-day swings are suggesting to me that it is a good opportunity to take a rest and remain on the sidelines waiting for a better or safer Risk/Reward opportunity.
As I discussed yesterday in the technical update, the extreme oversold readings and the apparent ability to pause temporarily the downtrend at the critical support in the area of SPX 1292 are encouraging the feasibility of a potential multi-day rebound.
Yesterday's daily SPX Spinning Top is not very encouraging but I maintain the idea I have discussed yesterday regarding the structure of the decline from the May 1 lower high and its implications:
"So far I cannot count it as impulsive, then barring that today price rolls over to the down side I am inclined to assign a larger probability to the Double Zig Zag option, in which case, on Friday price would have established the wave (A) of the second Zig Zag.
If this is the correct count then price is now involved in the infancy stages of a wave (B) rebound that could have as a target the range 1340 - 1353
Then once the wave (B) is completed price will resume the downtrend with a wave (C) down with a potential target in the range 1278 - 1220".