The rebound off the low appears to be corrective. It resembles a bearish triangle in SP500 (however, the Dow does not agree). It raises several interesting possibilities.
On the bearish side, we see the possibilities of an immediate retest of the low tomorrow or further declines following the completion of the current rebound.
On the bullish side, we see the possibilities of a tiny degree bullish terminal triangle which counts as wave (c) of an ABC decline, or a nested 1s and 2s.
See charts.
[1225 pm] SPX update -
The highest day-gap around 2055 is filled this morning. The next day-gap is around 2000 if a high is in. Otherwise, a small-degree 5th wave of a regular five (green) or an expanding EDT (blue) is next. See charts.
[805 am] ES update -
1st of the last month of 2014. ES tracking of a potential wave C. See chart and the matching count of SP500 cash in Chart S2 of the Monthly Outlook Update (11/28/14).. The red count in the chart tracks the immediately bearish case.
