Reasonable - 2

Now with about 110+ candles on the SPY hourly chart, the current count is still shown as a 'reasonable' fourth wave, 4, at the 38.2% retrace level.

The internal count of wave 4 is likely a double or triple zigzag. It is difficult to say. And, if it is the triple zigzag, it could also be a very poorly formed leading diagonal.

Therefore, the main count is shown in black as the channel count. Right now the channel is holding well, and red volume surged on the FED FOMC meeting outcome. The EWO characteristically poked above the zero line, too, well within its parameters of +10% to -40% of the prior trough.

So, the same procedure applies as yesterday: 1) a 'wave-counting-stop' is placed above today's high. As long as that stop is not hit, then it is more likely that wave Minor 5, downward, is under construction. 2) IFF the stop is hit then a re-evaluation is needed, including the potential alternate count shown in red of an expanding diagonal.

(Regarding the alternate: the concern for the diagonal arises because the internal structures of waves 1 & 3 might be three-wave-sequences. The count on these two downward waves is not as straight-forward as one would like - including the location of the wave three gaps.)

Have a good start to the evening.

TraderJoe