Corrective price action higher for US500US 500 IndexPEPPERSTONE:US500discobiscuitPrice action between 7624.6 and 7229.3 was a choppy mess, with three diagonals per this interpretation. I think the key area, though, is what's encircled in the red ellipse. Bulls need that to be an impulse C to complete an expanded flat, and I just don't see how to make it a diagonal. There is a diagonal in it, but it's a diagonal A of an ABC zigzag. If the price action in red is not a C wave, then the entire structure encircled in the green ellipse is corrective, not impulsive, and that implies a diagonal of larger degree might be forming. Bulls are fine as long as price can stay above 7624.6; if price breaks below 7624.6 but stays above 7229.3, then I'd be looking at a wave 4 forming and the possibility of a large diagonal increasing.