Watch out if the S+P 500 takes out 5,500 later today

The S+P 500 closed at 5,580.94 on Friday, with a loss of 112.37 points on the day. Right now the reader is reminded of the March low, at 5,504 and the subsequent corrective rebound that saw it bounce back towards 5,800. All the while that rebound was playing out, warnings were issued here, regarding the corrective (not dynamic) nature of the rebound. Well, right now this morning, the S+P 500 futures are further in the red and have been pricing the opening closer to that 5,504, prior 2025 low. So, the opening outlook remains very uncertain just now today. A two part update here last week noted the prospect of the wider downside move unfolding in either a 3-wave, or 5-wave sequence. So, if the index does fall below 5,504 later today, then it could obviously define that corrective bounce towards 5,800 is over and hence open the prospect of more downside to come. Of course this is just a prognosis and not a definite directional call. That is up to you to decide, but the warnings signs are there. The S+P 500 is right now priced to reopen around 5,534