Multi-Day Bounce Expected for The S&P500

A daily candlestick chart of the SPX with a thorough EWP count and a number of technical indicators.

The manner in which the adjustment should take place.

The two-week decrease from the late-March high (red, intermediate wave-b) should have required a multi-day correction, but the recent rebound off the 4370 low has only lasted one day, although the decline was two weeks.

B-waves, in fact, are made up of three smaller waves: a, b, and c. Despite the fact that the index has already reached the bottom end of the ideal (green) minor-b/2 wave's goal zone (see Figure 1), wave-a of b/2 is most likely still incomplete. 

As a result, depending on where the more tiny wave-b bottoms and how far wave-c extends, I estimate a retreat to 4410-4430 for (grey) minute wave-b before wave-c of b/2 takes hold and rallies the index back to about 4500-4535 (upper grey target zone) (1.0x a or 1.618x a).

In conclusion

The S&P500 index bottomed exactly where I said it would, at 4375 vs. 4370, and then produced the expected rebound. This gain should be part of a multi-day bounce, with a short-term retreat to 4410-4430 preferably started before the Bulls can rally the market to 4500-4535, which corresponds nicely with my original prediction of a high of about SPX4500+/-25 last week.

I still foresee a drop to SPX4150+/-25 (green c/3) and below (red arrows). It will need a break above SPX4435 to indicate that something else is happening (green arrow). As a result, "all we can do is predict, monitor, and modify," as I usually say.