The drop yesterday was more than I was thinking and ended up closing at the practical limit for a fourth wave, the 38% retrace of the January 19th low to the January 27th high. The problem of course is what is the form? The drop in the afternoon yesterday created overlap with the swing that ended on January 23rd. There are two possible resolutions, either wave (I) was early, see the labels in blue, or the whole form is that of an ending diagonal which is what I’m going with.
So far, SPX is slowing against old support at 4046, now resist, but think it likely to grind through toward 4056 or 4065-67. Next would be a mild consolidation for a ‘B’ wave prior to pushing to retest the high or a minor new high.