A New Count?

Well, the market went up. I did cover around 880 and have started selling of my May puts. If we are in a massive wave 3, then we should gap up tomorrow and keep on going. The problem is, I have a hard time getting over the wave patterns. There are too many choppy waves for my liking. So, I decided to revisit my original thought of a triple zigzag. The impulsive count really only worked with immediate downside action this morning. And since an ED doesn't extend, that throws that count out. Plus if this really was a massive wave 3 of 5, then wave 3 would end up being the smallest wave, which is another no no.

So here is what I have. A triple zigzag. We're currently in the last leg of the zigzag. The only confirmation I would have right now for this count is for price to drop below the last wave Bs (SPX 866 & 847), and then below 826. We do have some significant Fib relationships at 907 & 911, so if we drop immediately tomorrow, then that would be a very encouraging sign. If the bullish count is correct, then we should have another significant up day tomorrow. I won't be adding any short positions until 866 gets taken out.

Best to your trading.