The Other Side Of The Coin

In my last update, I failed to provide you with the alternative perspective.   And, due to the strength of the drop off today’s high, I wanted to send out another note just preparing you for an alternative.

Again, I want to reiterate that the more bullish near term outcome is my primary, as long as we hold yesterday’s low in SPX and NQ.  However, in the event those break, then the potential for the b-wave top as being in place is what I will likely shift towards, and is now my alternative.

That potential can best be seen in the IWM set up, which has a 1-2 in place, with waves i-ii already in place for wave [i] of 3.  

So, to reiterate, should we hold yesterday’s low, I am still looking higher as my primary wave count.  However, should we break yesterday’s low, it can open a can of worms, and send us down strongly if we are following the path of the IWM, and starting a c-wave down. In SPX and NQ, it would be wave 1 of the c-wave, whereas in IWM it would be wave [i] of wave 3 of the c-wave.

And, of course, if the downside does start morphing into more of a corrective structure, then we will adopt the blue b-wave count on the SPX chart.