This is not the Mini but the cash contract. With its sharp decline this morning it has not pushed to a new record low, but now has formed two long spikes to the downside. I see this as a positive, but a new downside could still happen. It would do so as a 3 wave structure, not with a 5 wave impulse.
I am a real stickler into watching how a new low is created as there are huge differences in their outcomes. Being lazy and calling a 3 wave decline a 5 wave decline will never work. In case no new low is achieved in the next few days, then this can stand as the start of a diagonal 5 waves.
I changed my trend lines for a reason as this is what a diagonal crash can do. It's just a smaller version of the 2007-2008 decline. You don't want to think impulse decline when in reality it is a diagonal or an "ABC" decline.
The January 11th decline sure looks like it can fit an ending diagonal very well, so that also helps to support a potential bullish reversal. This SPY00 has about 300 points to go, to break a new world record high, which not too many believe can be done. It is a big mistake to underestimate the markets to rally after they have been pointing down for sometime, especially if it is pointing down, with a 3 wave structure.