In yesterday's morning report, I reiterated my call for S&P 1370 to occur in the coming days before the start of a notable, multi-day corrective pullback. Yesterday's chart is shown below for convenience (chart 1). When 1370 is finally attained, (green) wave 5 of (blue) wave c of (blue) wave 3 will come to a conclusion, giving way to (blue) wave 4.

 
Chart 1. The wave structure of the S&P. The analysis is based on Ian Copsey's HEW. 

Using SPY as a proxy for the S$P 500, (green) wave 5 must subdivide into an ABC. The 60-min chart below depicts the pattern that's currently unfolding. Until the price action negates the pattern, this forecast should stand. Today's drop is (blue) wave B of (green) wave 5, and (blue) wave C is currently in progress. The momentum indicator is in support of this analysis.


Chart 2. The path taken by SPY on the way to an interim high.

Trade Well,

Peter