SPX triangle & Alternative EW

SPX is showing a triangle formation with SPX 800 support. The SPX EW on 60min is a less bearish formation holding SPX 800. Wave 4 and 5 corrective forms can be quite complex with long strings of counts. Breaking the support will be following more bearish pattern. Markets are showing positive divergences, however, we have quite bearish market sentiment and so far, that is not proven to be a contrarian indicator for a decent market bounce.




Another alternative:

SPX daily: less bearish EW count with 5th wave in progression instead of 4th wave in progress. The Oct 2007 top could be VLT 5th impulse wave top instead of a corrective wave B. Based on this speculation, the current 5th wave is a VLT corrective wave A. However, the 5th wave speculation can be valid if markets break above the (symmetrical) triangle formation which is usually bearish formation as we are in downtrend since the Oct 2007 top. Breaking Nov2008 low, of course, negates this scenario.