EW wise, there is one more wave down to complete the wave 4 correction that started in October 2018 but there is a possibility that wave 5 may be truncated by the Dovish speech by the FED today and an excellent NFP report.
of an extended 3 but this wave is already 1.618 wave 1 and should be counted as wave 3. The subsequent correction looks like a wave 4 except it is deeper than normal. An alternate is added as a possible truncated V due to the FED Speaks.
Wave 4 typically retraces between 23.6~38.2% of wave 3. We have an almost perfect ture for an ending diagonal. Price is sitting outside the lower BB. Extreme market Fear sentiment indicates market is poised for a reversal. 2 rate hikes in 2019 seems to indicate a softening of the FED's tightening stance.
The sky has not fallen. Wave 4 typically retraces 38.2 % of wave 3. The SPX is converging on a confluence of several key supports, Daily Pivot's S3, Fib 38.2%, Double Bottom, apex of ending diagonal, and most significant of all, the long term channel support.