Yesterday's low was broken this morning. The above 15 minute chart of the S&P 500 index shows prices continuing lower within a channel that started forming on 12/4. I expect prices to move lower tomorrow respecting the upper line of this channel in a continuing B wave. The count shown above has changed slightly as suggested was possible in yesterday's post, but the larger flat + zigzag combination is still valid. A zigzag down is pretty clear given the overlap today but of course it may be part of a larger pattern.
In a 1 minute chart above, notice the clear zigzag wave following the lows today. After a choppy correction lower, there was another rally in the afternoon that brought prices beyond the previous high of the day. Either a flat or a double zigzag appears to have unfolded, stopping after striking the upper channel line shown in the first chart. This seems to be a good setup for another sell-off tomorrow. Given the larger wave count and momentum, the best options seems to be wave v lower to complete (c) of [y] of B. There is no requirement that prices move below [w] but it seem likely.
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