Fast rally up and then another sharp drop, that sure looks like it can fit into another correction.
The $1270 price level would be a critical price level as my entire wave count so far cannot exceed this previous wave 2 price level. One thing is definite, in an ending diagonal type wave, and that is the price level must not dip above the previous wave 2 peak. If and when it does, then an instant review must take place, which I have a habit of doing anyways.
Most of the time I am working or thinking about an alternate wave structure as there are always 5 choices I can look at and the trick is to eliminate as many and as fast as I can.
When this pattern does get broken, then the entire structure can fit into a diagonal 5th wave which would be very bearish, once it has played out. Also then the $1280 price level could get breached.