Option Investor
Update
HAVING TROUBLE PRINTING?
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With the press higher towards yesterday's highs (the DOW has already made a new high), it's clear yesterday afternoon's decline was not the start of another leg down. This morning's rally is either the start of the next big rally leg (I have serious doubts about that) or the c-wave of an a-b-c bounce off Monday's low. Two equal legs up off that low is at SPX 814 and gap close would be at 816 so that provides an upside target zone for the bounce. Following this leg up should be another decline at least equal to the 1st leg down from last week's high. If SPX bounces up to 814 (not a given yet) then the downside projection will be down to about 760. As shown on the updated 60-min chart that could be the retest of the broken downtrend line from January by the end of the day Friday.

SPX 60-min chart:
[Image 1]

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