The fairly persistent rise up off the 2357 SPX low yesterday and lack of selling today opens the door to the low being of greater import than a mere first impulse down, that it may in fact terminated the corrective formation we have been in since March.

The lack of selling yesterday and today is a problem for the bearish case. Yes, if strong selling returned late today and carried on into next week bears could make this wave (iv) deeper, probably touching the bottom of the channel. However, that isn’t happening as I type and the confluence of an impulse down, for a ‘c’ wave, into a support that just happens to be a harmonic the large Schiff channel forces me to posit a bullish case where there will be a rise into at least a new high. For timing, absent a shock, we probably have to assume a rise into the next FOMC meeting.

I’ve sketched in a possible ending diagonal here as that would be a way to run the clock into the FOMC meeting at not gain too much ground price wise doing so.