Current Suggestion

Tops of any degree can be darn difficult. In our local case, we don't know for sure that a truncation has occurred. But, if it did occur, it could have happened in one of two places. Those are both shown in the SPX500 (CFD) 4-hr chart below, market with the red asterisk and question mark.

SPX500 (CFD) - 4 Hr - Channel

So, the best suggestion at this time is to draw the parallel, as shown and see if today's high is exceeded higher. If it is, then the A/B/C count lower may best pertain, especially if there should be upward overlap. Otherwise, it will be harder to claim a larger degree "five-down" until or unless there is a new low from here. Then, if there is, there could still be confusion with the nominal high made on 6 Oct. And that is why there is also a purple 1 & 2 shown in the count with purple 1 near the low.

If the market is to truly be weak, then it must show that character. If it is to be stronger, it could still wheeze upward into a larger diagonal. So far, the buying has persisted into yesterday. If the market can truly be perceived in a down trend at this time, that buying would seem a bit odd - unless the buyers are ignoring all the warnings (or those doing the buying have nothing to lose - like government officials, etc.)

So, caution, patience and flexibility are still highly recommended until the market speaks more clearly.

Have an excellent rest of the day and start to the weekend.

TraderJoe