I maintain as a probable scenario that price from the October 2013 low is forming an Ending Diagonal, in which case SPX is now involved in unfolding the last wave (V).
If the Ending Diagonal pans out (Terminal Elliott Wave pattern) SPX should conclude a Double Zig Zag from the March 2009 lows opening the door to a major reversal.
The assumed wave (V) of the Ending Diagonal idea has to unfold a corrective pattern, usually either a Zig Zag or a Double Zig Zag.
If the overlapping up leg from the April 28 low can be considered an Expanded Ending Diagonal/Leading Diagonal then we would have two options:
- If it were an Expanded Ending Diagonal, at last Friday's hod price should have completed with a Double Zig Zag the wave (A) of a larger Zig Zag, in which case the wave (B) pullback should bottom in the range 1862-1844 (Blue labelling). Once the wave (B) is in place it will be followed by the last wave (C) up that will complete the Ending Diagonal.
- If it were a Leading Diagonal then last Friday's hod would be the wave (I) of a pending impulsive sequence that will complete a Double Zig Zag from the April 11 low establishing the wave (V) of the Ending Diagonal (Red labelling). If this is the correct pattern a wave (2) pullback should bottom in the range 1872 - 1866
In addition to the two options discussed above we cannot rule out that Friday's hod is the wave (b) of a Triangle, which would establish the wave (B) of a Double Zig Zag. if this is the correct pattern the following thrust wave (Y) will complete the Ending Diagonal.