S&P unfortunately for bulls broke support levels yesterday and confirmed our fears regarding the absence of an upward impulsive pattern. It was fine as long as the prices were above support, but after 1450 was broken, we knew from our previous analysis that next stop was 1439. So what now? The break of the support levels means that the correction of the entire upward move from 1397 to 1474 is not over yet. It is just going to get more complex than initially expected.
A bounce back towards 1450 could be the case today, but I feel that 1430 is going to be tested once again. Middle pitchfork support could be the target of the end of this correction, but if broken the price targets will be lower towards 1430-20.
Concluding, our longer term bullish view has not changed as long as the index is above 1397. The correction we are in, counts best as the wave count shown in the chart posted. If you need help understanding my posts or need more details regarding my analysis don't hesitate to contact me.
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