There was a significant sell-off today with prices reaching below 1130. I think the decline is best counted as a 5 as the above 1 minute chart shows, but the gap down at the open following yesterday's closing rally is not encouraging for the beginning of [3]. The reason is momentum and the past history of this type of gaping following a rally on the S&P 500. It is possible a top completed yesterday but I have my doubts.
If an upward rally is ahead, it may be wave [v] of C. An expanding flat may have completed today like the one pictured above in the 5 minute chart.
A larger view of the S&P 500 shows support once again being found at the trend line shown in the daily bar chart above.
It was the same situation on the Dow Jones Industrial Average today.
Until these lines are broken with closing prices significantly below the line, the primary wave [2] rally remains intact.
Tomorrow will be an important day. The resistance around 1141 should not be breached if the decline is legitimate. If it is breached, expect the rally to continue.
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