Despite the big percentage changes, this is a market going nowhere, and it's been going nowhere since Monday's bottom at the closing bell. Sideways action is counter-current, and the current is down.
The sub-wave 4 top might be in, but that is no sure thing. A retracement all the way up to about 1258 is possible, though I would be surprised by that kind of strength. More to come.
Update: At 1:00 pm the index is bumping up against yesterday's post-opening high of 1160 and seems to have hit resistance - a band from about 1160 to 1170 going back to Monday morning. Up or down from here to closing? I'm not taking either side of that bet.
Closing Bell Update: A strong finish allowed the index to punch through the resistance band (that I might have imagined) to a high of 1186.29, before slipping back to 1172.62 at the bell. Bursting through the two day trading limits has taken us all the way to -- Tuesday. What I said then was: "Let's say it tops
Not much to add at this point - except that subwave 2 was a pretty direct A-B-C. between 7/18 and 7/22. We can expect subwave 4 to be a more complex and possibly longer formation.