This is a thrilling moment, and bears for the first time in a long time should be feeling a sudden quiver of excitement.
SPX’s EWP from the April 2 top looks like a corrective and inoffensive 3 -wave down leg that is going to be bought by dip buyers. Some EW analysts are considering this EWP a wave (4) that will lead to the resumption of the intermediate up trend. This option is technically improbable since the first up leg off the October 4 low was not impulsive; hence I am giving to this option a low probability of being the correct one.
Instead, in my opinion, price could be involved in kicking off a larger corrective pattern that should retrace partially the October 4 – April 2 three-wave up leg, with a wave (B) that could make a shot to the 200 d MA = 1277
