FractalTrader

Market action going into monday

FX:SPX500   S&P 500 Index
94 2 3
Unless we get another leg down on the 4H chart, this correction remains a simple ABC corrective pattern. Five waves down, of course, sets the stage for a confirmed trend change.
Shorter term, the 1H chart shows a potential ABC up, unless it makes another high here prior to heading back toward the lows.

The count, as I have them here, shows a move back to the lows (in line with bearish sentiment on the weekend news), but falls short of making new lows. An expanded flat 4 would allow a move to new lows, while still carving out a wave 4, so still lots of possibilities.

I tend not to play 4's since they are not high probability patterns, so right now we wait for confirmation of preferred counts.
updated picture
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Short term action has now negated the possibility of a fifth wave down, as proposed on the 4h chart. On the 1h chart, we have 5 waves up, which has set the stage for further upside. With a 3 wave ABC down, and 5 up, I have to lean with a bullish short term view for now
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