Mini SP500 Intraday Top Update

I would love to say, ” The wave count is clear”,  and a crash to the 500 price level is near, but in reality this may never happen if this market keeps crashing, but then fully recovers in a week or so later. The markets can keep this zigzag action up for a long time, and the best we can do is to monitor it. Finding the start of a bearish wave structure is extremely important as  five wave sequences are pointers for further declines.  Diagonals confuse the situation as they contain many zigzags but they belong to the 5 wave family and not the 3 wave corrective group. Any diagonal can only be one part of a correction, but never the entire correction. 

Markets can move so fast that by the time you count out a chart and post it, it can already be dead. If this downturn is part of the  bigger bearish trend than, the SP500 must keep making lower lows. This is when inverted flats and zigzags come into play, which is the exact opposite of what happens in a bull market. 

The VIX has started to crash again, as it blasted up creating another huge gap below.  All gaps eventually get closed off even though it could take years to do.

The markets could drag on like this for a long time,  but I will remain bearish until this market sends us a clear picture of a new downward trend.  All trends eventually come to an end, but until they actually do, we have to play this cat and mouse game.

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