Primary Count: A zig zag from 930 SPX is tracing out and either the low has been achieved today or will be early tomorrow. 930 was the near term high for a C wave up.
A zig zag down means a "three". When subwaves are combined together to make bigger waves (thats what EW theory is all about) it can give a clue sometimes as to what may be happening over the longer term.
A 5-3-5 zig zag is considered a 3 wave pattern and its subwave pattern consists of a 5 wave - 3 wave - 5 wave pattern. Since Zig zags are a "3" they often form a typical "A" wave of a larger wave pattern such as a 3-3-5 wave flat or expanded flat. So what am I getting at?
Well the market seems to be settling on support. If this zig zag is an "A" wave of a large flat corrective pattern, then the next moves will get bullish and head back above 900.
A flat can expand beyond the previous peak and still be considered a "corrective" wave. Of course if a B wave peak formed, a nasty C wave following would occur. See my 60 minute chart.
So in this sense the market can still hit that darn 200DMA I have been harping about and still be in corrective mode of an X wave. Again see my 60 minute chart here.
This is all highly speculative but hey, wave interpretation always is somewhat. A "three" down means the corrective is 1) over 2) The first corrective pattern in a larger "double" three 3) the "A" wave of a flat pattern of some kind.
In all three cases above, it all implies the same thing: A bounce back upwards. How far and how high it bounces will determine what comes after that.
The 4th possibility is that I am completely wrong in my counting and the market will remain bearish. Watch down volume and how it handles this key support zones at 865-880.