While price appears to have departed from historical seasonal, which is understandable considering this election year can be categorized as anything but normal, we'll focus on some levels to be mindful of on the SPX chart. Twice on Friday price challenged the 2086 Primary Intermediate Level which provided support and price was also rejected at the high of day by the Intermediate Minor Level at 2099. With the 200DMA and two Primary Intermediate Levels residing in the 2086 to 2073 zone it is to be expected that this area will be substantially supportive barring a gap open on the underside of 2073. In this gap scenario 2058/59, but more likely 2040 will want to be tested before a bounce back up towards the 200DMA and the underside of 2073. HAL and RVS still have reasonably sized long positions on and with the confluence of technical and MCM related support just underneath, a price recovery of reasonable magnitude would not be surprising from this general area.
Now that we've progressed deep enough into the proposed diagonal pattern we can focus on another aspect that will eliminate it as an option and put the expanded flat firmly on the table. In an Elliott Wave contracting diagonal the fourth wave must remain shorter than the second wave for the structure to remain valid. In this case the 2064 level would be that demarcation point. From there we could focus solely on the lower levels before any sort of bottoming expectations were to take place. Good luck trading this week and mind mid week for election results because it could make for a bumpy ride. Trade safe.