The bounce back in US indices has become steep retracing almost 50% and closing above the 20dma. This calls for a reassessment of the wave labels. Shown below is a case that the move up is wave 4, as wave 3 was slightly larger than wave 1. But it did not extend up to 161%. Also 50% is a steep retracement for wave 4 given that wave 2 was 61.8%. And since momentum is not yet back to the zero line there is room for the S&P to attempt the 40 dema [green average]. EWI is considering this wave 1 and 2 of 3 instead of 4, and the deep retracement does suggest that. So I will keep that open as an alternate now. It means that we are seeing sub-divisions at large degree inside wave 3, and if true then the price declines can start off anytime with even more volatility.