Market technicals also look bullish.
Internal statistics still show that volume as measured by a ratio of Volume on up days/Total volume (using a 30 day base) as well as the McClellan Summation Index are both still in an uptrend. The McClellan Oscillator has dropped from an overbought reading at the onset of the recent sell off and is now in the neutral area, so it has possibly reset. (Note: Als Indicator is a mish mash of A/D, volume and momentum statistics used by the author for many years, it works very well as a bottom finder but not so well otherwise).
EW Counts
Bullish alternate
The ES narrowly avoided the 1317 level considered a red flag for the bullish case this week with a low print of 1319.75 on Thursday. The action since then looks impulsive although it needs a 4th & 5th wave to complete as mentioned earlier. If this count is correct the ES/SPX should rally strongly from this point. A rally up past the 1375 high of Jul 5 will help cement the bullish case.
Bearish alternate
The pattern since the Jul 5 top is a little unclear from a bearish perspective. Best interpretation at this point is for 5 waves down into the Jul 10 low at 1330.50 for Minute W1 with a (very) irregular flat being formed for Minute W2. On this basis a likely target for Minute W2 is at the .618 retrace of Minute W1 at 1358.00.
ES 1388.00 is the red flag level for the bearish case.
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