S&P 500 - has tagged a common target for the first leg down

This is a big picture of the rally that started off August 2019 low and has been following the Five Wave up fractal. S&P dropped right to 23.6% retracement of wave ( iii ) which is a common target for subwave ( a ) down of wave ( iv ). Before S&P plays another leg down in subwave ( c ) it needs to play a corrective pullback in subwave ( b ) up. The ultimate target for subwave ( c ) of wave ( iv ) down is shown by the Green Target box. It is formed by 41.4%, 44.1% and 50% retracement levels of wave ( iii ) up.

It is important to understand that the Five Wave up fractal is far from completion. At best S&P has topped in wave ( iii ) up and started a corrective wave ( iv ) down. But it should go higher in wave ( v ) up after completion of this corrective wave ( iv ) down.

SPX - 120 min chart updated on 1-31-2020

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