Elliott Wave suggests an oversold bounce is coming due now or soon in the equities and other markets

Interesting that equities followed the intraday indications from the ChartsEdge map today - including the late afternoon swoon that coincided (by accident I'm sure) with Bob Prechter on CNBC. Did the SPX make a low today, and if so, what's the significance? One point of view comes from Objective Elliott Wave - Tony Caldaro's update tonight at his the ELLIOTT WAVE lives on site is worth reading, and also his public charts (you'll find the link there). As Tony explains, it's possible the SPX has bottomed its small wave 5 to finish "i" down and ready for tradable bounce up in wave ii. Alternatively, that the wave 5 of "i" low is about to occur, and then up in wave ii. Either way, this wave count assumes that the SPX is bearishly going down in his wave C to retest the March lows. He says in tonight's update:

If Minor wave 4 ended yesterday at SPX 1103 and today's SPX 1090 low ended Minor wave 5, wave 5 was quite small in relation to Minor waves 1 and 3. Another view would be that Minor wave 4 ended at today's SPX 1104 high and wave 5 is now underway. Our short term charts are giving mixed signals. A break of today's daily range (SPX 1090-1104), either way, should determine which count is ongoing.

A copy of Tony's hourly chart is below, showing where he marked a tentative wave "i" low in green. The idea of a bounce up fits with some of the sentiment and technical indicators, plus the well-worn late-month fund buying which often pushes the indices higher into the new month. The big question will be, whether the index pushes to a higher high or lower high? The Elliott Wave count implies it'll be a lower high (wave "ii"), perhaps testing around the 1130 area. That would be approximately .707 retrace of the wave "i" drop, and there's plenty of overhang price resistance there. The 1120 area would be another alternative.

That's unless the wave "i" isn't done yet and needs to break under 1087. If that happens, the area around 1050 is likely to be tested for the completion of the wave "i" low. Although I recognize there may be other numbers in this time/price zone, including Andre Gratian's thinking on the 9-month cycle which he's fine-tuning to his subscribers. So, just be aware that the picture might change now or soon for some bounce potential. And note the positive divergence on the hourly SPX that can help make it happen.