Since reaching new highs in Feb, SPY has been correcting, with primary or intermediate wave A)) down, wave B)) up, and now wave C)) down. I believe this C)) wave is not complete yet, and is subdividing into 5 waves, because the rally off the April lows, labeled intermediate 1), doesn't strike me as impulsive. So I'm labeling the April 18 swing high as intermediate 2).
I believe today's 5 wave downmove, labeled minor 1, is complete and I'm looking for minor 2 up on Monday. When that is completed we should have a strong down move. A move above the intermediate 2) high, 271.29, negates this scenario.
Since your(1) is higher than a )). This could still be part of a sideways consolidation such as a triangle. Best to you. Have a great weekend.
CBOEAlumus
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@goodguy, Thanks. That's true. It would explain a lot of the sloppy action. The volume also correlates with that. I'm hoping my preferred count is right, since triangles are much more difficult to trade than an impulse third wave down.