A-B-C rallies are meant to shake shorts out of their positions so that prices can collapse with the fewest number of put-holders as possible. I've identified the two most recent a-b-c rallies on the SPX chart below, the second of which is ongoing and can end at any time, resolving into a new leg down to new lows. Alternatively, it can run a longer course, running into the end of this week. In either case, the next leg down should be a doozy, likely accompanied by some bad geopolitical news. Bottom line: The structure for a market collapse is there and each 30 minute bar brings it closer to fruition. Only a rally above these two Wave 2 highs invalidates the analysis: SPX 4340; DJI 33636 Taking out the (b) lows will be the game-on trigger for a Wave 3 down. SPX - 30 Minute Closer-up DJI - 30 Minute
