Top of Wave iii Target Hit
As we said yesterday afternoon,”[a]ssuming we hold that level (1636ES), I will expect the market to rally towards the 1669ES region to top in a wave iii in the (c) wave.” Today, we found ourselves at 1669ES, and have even slightly exceeded it.
So, assuming wave iii is now complete, which means we must stay below 1674ES, then my next expectation would be a drop in wave iv towards the 1645ES region. Potentially, this can begin this evening or tomorrow, again, assuming wave iii has completed. It is from this region I do expect another rally, and based upon how that rally plays out, it could be the wave v of this (c) wave of the larger yellow b-wave – of course, which no one will believe, since everyone is now so bullish with the Bernanke Put.
So, we will see, as our alternative count is the more bullish count, with the ideal target of 1720ES – assuming that plays out, and the potential to get up as high as 1740ES. But, again, that is the alternative.