Yesterday I noted the possibility of the AB=CD move on the $SPX hourly chart
SPX drops from the high of 929.33 on Friday to a low today of 908.86 making the AB leg. The market then retraced 32% from 908.86 then begins to fall again. The pattern would be completed around 896.59 unless it extends the downleg.
Well so far the low of the day is 896.46, completing this AB=CD pattern. Now there is a chance that the market could extend the D leg but, with the STOCH oversold and $SPX forming a Matching Lows candlestick pattern. There is a chance the market could move up from these levels. A break of the lows would extend the down leg. On a longer time frame 900 has been broken on a daily level and was significant support for the bulls if the bears can follow through and close the market below 900 it would be a dent in the bulls armor.
