Sideways Led To A Pop

With the market popping higher today this seems to be the final segment in the wave (v).   Therefore, when we break back below the last micro-consolidation – which is basically the 7500SPX support level – then that is the initial signal that this structure has completed.

Ultimately, we still need to break down below 7389SPX, with follow through below 7320SPX to confirm that we are either in the blue wave 2, or the red a-wave.  

But, please recognize that we are now striking the 3.764 extension off waves i-ii in this rally off the end of March low.  To say this is extreme is likely understating it.  So, of course, risk continues to rise.

I had a number of questions as to why I believe that the higher this goes, the lesser the likelihood of the blue count taking shape.  The reason is that this rally seems way too large to be considered a wave 1, but rather than final 5-wave structure within the larger degree structure.  Of course, I am still going to remain objective and will make our determination based upon the action we see in the price structure over the coming months.  But, for now, that is how I am seeing the structure.  Yet, that is not set in stone.