Has The Melt-up Begun?

Our larger degree set up is a (1)(2), (i)(ii), 1-2.  This means we are about to begin the heart of a 3^rd wave, as long as we do not break below our support region. 

While wave 2 can certainly have completed at the point I have marked the a-wave low, it just “looks” a bit small to me at this point.  Yet, when you are about to start the heart of a 3^rd wave, that is sometimes all you get.

However, we still need to break out through our resistance region to consider us being in the heart of the 3^rd wave melt-up.  The current micro count, should we continue higher before breaking below 2167SPX is targeting 2193SPX.  Any appreciable move through there before we break back below 2167SPX is a strong warning to anyone who is maintaining any bearish bias.  This pattern set up is explosive, and can see several gaps up on our way to the next way-station at 2280-2300SPX for wave 3. 

So while I am optimistic of a break out to take hold, I am not confident that all the pullback is done.  But, this is certainly not a set up I would consider shorting until SOME support is broken.  Again, this is a set up which can simply melt-up into early 2017 with or without a bigger wave 2 pullback.