Bulls Are Trying To Open The Next Door

With the SPX moving through the resistance box today, I have been forced to add a bullish alternative to the counts I am tracking.  But, I want to make it clear that this is in no way my preferred path at this time, and it will need to prove itself as per the outline below.

For now, I am still viewing this rally as a (b) wave until proven otherwise.  But, we also need to see a CLEAR 5-wave decline to make it a strong probability that a (c) wave decline is in progress.  

This is now the alternative I presented in the trading room today:

“As I mentioned in the weekend update, if the market was able to move through the resistance noted on my 5-minute SPX chart, then I have to begin considering other potential paths.   So, I am going to present the bullish count just for you to know what to look for.  But, I have a very hard time seeing this is what is playing out for multiple reasons, some of which I already outlined in past updates.

But, IF wave 2 is done already, then I am presenting it in the yellow path.  Since the minimum target we really see for wave i of 3 is the .382 extension of waves 1-2, then we will have to rally towards the 7700SPX region in this move up.  Thereafter, we would need to see a corrective pullback in yellow wave ii.  If we then rally back over the high of wave i, then I have no choice but to adopt this count, with a minimum projection for this 5th wave in the 9500SPX region.

There is plenty of meat on the bone if the yellow count does prove itself, so I am going to be a bit more patient, as I still do not think that is the correct path.  But, at least I know where I am wrong in that assumption and when to begin looking much higher.  Should that occur, I will likely be looking for individual stocks to buy that have the best potential for this move. But, again, this is no where near my primary count until proven”.