Unless 1230 is taken out then it makes better sense the market is in wave [iv] - despite the NDX chart . And the only way the SPX makes sense as a Minor wave 2 up is if the 1356 was a truncated high. If there is an even bigger squeeze and a backtest of the broken neckline and/or 200 DMA, well there ya go.
[Update 8:42PM: This is a very tough market. On one hand you have a pretty good amount of bearishness such as the II survey that came out today after a post-crash that indicates at best we are near the end of wave [iv] heading into a wave [v] and a Minor wave 1 low. For instance the put/call ratios moving averages are at levels seen in the 2008 crash.
On the other hand, you have the Nasdaq100 which is actually a decent count and has approached 61.8% retracement from its high - more of a wave 2 event rather than a wave [iv] and certainly counts as a wave 2 at the moment.
Via Sentiment Trader, you have QQQQ liquidity and TRIN sentiment charts which are approaching bullish extremes. This is more a wave 2 indication.
Perhaps the SPX will try and rally into FED and meet up with the 50 DMA which it has not touched in a while. The 50 DMA will come lower under the 1230 pivot.
The strong price squeeze today blew up the count of (i)-(ii), i-ii of Minute [v] down. Likely the market is still tracing a wave [iv] either a triangle of some other combination or we have a wave (ii) of [v] expanded flat.
Overall the market internals tell a bearish story: The advancing versus declining stocks on the NYSE finished at a ho-hum 2.86 and the up volume was 8.99. Looking on the 60 minute chart this is lesser and lesser than the previous buying frenzies as of late. Its consistent with a short squeeze in my opinion.