From a bullish perspective, SPX could seek a potential fourth wave low. The case of a fourth wave pullback would be stronger if SPX stays within the current downward channel - the entire pullback would be an A-B-C(triangle)structure.
Although the measured target area would be 2280-2300, a break of the downward channel presents potential for a larger decline to fill several gaps below (Chart 2).
From a bearish perspective on a breakdown of the current downward channel, a potential low in SPX likely concludes an LDT or a series of initial ones and twos (Chart 3).
