Multi-Day Pullback?
I have been trying to keep my analysis as simple as possible over the last several weeks. And, in its simplest view, as long as we remain over 5091SPX, the bulls still remain in control for now.
The wave count I am tracking is an ending diagonal for wave 5 of the [c] wave of wave [5], which can be best seen on the attached 60-minute chart. And, within that ending diagonal, I am considering that today’s pullback has begun wave iv within wave 5, as we have already struck the ideal target for wave iii, which can be seen on the 5-minute SPX chart.
In an ideal structure, I would assume that the wave iv pullback can take several days. But, again, as long as the support box holds on the 5-minute chart, then I am still expecting a rally to 5300+ before this market has potential to top.
But, again, we still need to see a break-down below 5091SPX to provide us with an initial indication of a potentially major top having been struck. Yet, for now, I still think the market may be trying to take us to 5300+ before such a top may be struck.