Pullback Underway, Setting Us Up For Higher

We have not seen any deep consolidations in this market since we bottomed in October of 2023.  So, I am not sure it is reasonable to expect a deep pullback here.  

But, when I look at the IWM, I am leaning towards the ongoing wave 4 pullback, which means we can still see further weakness in the days to come.  

Clearly, the alternative path in IWM is presented in yellow and suggests that the 5^th wave is taking shape as an ending diagonal.  And, within that structure, we still need one more push higher towards 209+ in more direct fashion in order to complete the larger degree [c] wave of the b-wave rally.   

So, should the IWM provide us a final decline to complete wave 4, then I would assume that the SPX can see more of a wave ii pullback within its own wave 5 higher.  But, once we take out last week’s high, I have to begin to assume that we are in wave iii of wave 5.  And, the target for wave 5 seems to be 5300+ at this time.   Once we have a confirmed bottom in wave ii, I will provide projections for waves iii, iv and v in wave 5.

Lastly, I want to note that I have taken off the blue count and have one count on the 60-minute, as it think it makes the most sense at this time.

In very simple terms, as I noted in the title of this update, I believe we are “consolidating” for another run higher.  The only question now is how deep that pullback takes us before we head higher one more time.