SPX made 3 large waves down from its 1/4/2022 ATH (4818.62) to Friday's low (3810.32), netting a loss of 20.925%. The internal price structure appears corrective. There are several ways to count it and many which are near mature. As such, there is potential for a near term low. See Chart 1.
If the 20% drop is indeed a larger wave 4 pullback discussed in last week's post, there is also potential for an intermediate low. See Chart 2.
If the top is in, price should negotiate lower with momentum eventually. Time will tell.
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