This week S&P re-tested the low made at 2,728.81 in June 2019.
On the chart that is the low made by wave B down of wave 5 up.
That drop in S&P looks like a straight drop on a weekly chart.
However, if we open 60 min chart we will be able to see a nice -A-B-C- down structure (please scroll down):
The tricky point is that we can not be sure whether that -A-B-C-down structure would be all of corrective wave ( 4 ) down or only its first leg in subwave ( A ) of wave ( 4 ) down.
But even if that drop to 2,470 is only the first leg down in wave ( A ) down we should expect a large pullback in wave ( B ) up that should be able to retrace at least 50% of the drop ( pullback to 3,080 ).
Such a deep drop to 2,470 would retrace 41.4% of the whole wave ( 3 ) up.
That is deep enough to be all of the pullback in wave ( 4 ) down.
The main argument against that scenario is that wave ( 4 ) can not be that quick.
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