At turning points in the market, we always question whether we can see that one more higher high. Most of the time the market fills out the pattern quite nicely, and strikes our targets. Sometimes it is not as accommodating.
We are now at one of those points in time. The action today seems as though it provided us with waves b and c in the wave (iv) pullback of wave 5 of iii. As long as we hold over 2053SPX, I can reasonably view this pullback as a wave (iv). However, should we break 2048SPX (the 1.00 extension up in this micro count), it is a signal that we have topped in wave iii, and my minimum downside target is 2027SPX, with an ideal target at 2008SPX, as mentioned before.
As far as the IWM, it held much stronger today, and may even have developed a i-ii structure to the upside with a leading diagonal off the prior low. If that is the case, the micro pattern is setting up to strike our target on the 60 minute chart at 112.50, and maybe even a little higher.
But, as we always warn, trying to trade for the final squiggles in a count always comes with additional risk. So, please keep that in mind.