Time To Be On Alert

Over the weekend, I provided you with a [c] wave structure on the 3-minute IWM chart which suggested that we still need a 4-5 before that potentially completes.  With the market pushing higher today, it makes me consider that the 4^th wave has potentially completed, even though we did not see the standard overlap in waves 4 and 1 within a diagonals.

But, I am still going to leave the door open for that 4-5 as long as we do not reach the minimum target we normally see for a 5^th wave in an ending diagonal, which is the bottom of the box on the 3-minute chart, at the 1.618 extension.

Ideally, I would probably want to also see one more 4-5 in the SPX before this [c] wave completes.  And, I have this outlined on the attached 5-minute SPX chart. I have also added a micro support box, and as long as we hold over it, we can look higher.  

However, if we see an impulsive move that breaks the micro support box (5091-5113SPX), that is our first indication that the b-wave rally may have completed.

For now, I am on high alert for a 5-wave reversal to the downside.  Should we begin seeing that type of action, then we have to consider that this corrective rally has completed, and the potential for a larger decline may be building, as per the weekend update.   But, let’s wait until we see appropriate evidence and confirmation before calling this bull market dead.