Something may have broken yesterday, out of the blue, just as Bitcoin did last weekend. The impulse count higher is out the window. A larger pattern could be building, but yesterday's action was ominous.
What was the catalyst? Nothing. There doesn't have to be.
The break of 1796.36 gave everyone more than enough time to get out of the way. If it didn't, it's time to learn some simple wave rules.
Still, the 1779.09 swing point was not taken out. Like a coy minx, the S&P stopped at 1780.09. Playing with us? Probably so.
I would think it would be vital for 79.09 to hold. If it doesn't, 1746.20 immediately comes into focus. A break of that would be almost catastrophic for the bullish case.
The 1790 area is a good target for a bounce. I have some SPY 179 calls now against my VIX calls, but I don't have high confidence yet. In that the pattern doesn't look complete to the downside, however, it could still be corrective if it chooses to bounce hard. So at most I'm just testing the market.