Divergence in between SPX and RUT/COMPQ - The small cap indices broke their May lows and now sport a well defined wedge (which is very close to being complete if not already), while the May lows have been holding up in the large cap indices so far.
While this divergence could be a positive development given the near term "oversoldness", it may simply be an indication that the large caps are lagging.
If wave 1-down is indeed a leading diagonal, leave room for more downside pressure in SPX.
Alternative counts - It's also probable that the May low marks the end of 1-down or the end of an A-B-C correction.
Thus, 2-up or an X wave is in progress, most likely in the form of an expanded flat.