That was a very nice wave structure up today. It was nicely complete and the subwaves even had impulse 5 wave structures. All in all the market is setup perfectly for a power wave [iii] to head through 950 and this time hold it and propel higher.
A 28 point wave [i] is a very nice and if wave [iii] is 1.618 x 29 = 46 point wave [iii]. If the market started wave [iii] at today's late day low of 943, then your looking at 943 + 46 = 990 to the top of wave [iii]. Not saying that's how its all going to shake out but I wanted to show you how I calculate some basic wave relationships.
The alternate count is that today was the top. That means that EWI's count is correct and this was not a B wave triangle but a 4th wave triangle. Since the market traced 5 clear waves with a deep retrace (which can only be a wave [ii]) so by their count it is all over at 956 and some change and a significant decline is coming.
As I heard Kenny mention, well, if the market traced a long 7 day triangle just to make a move to 956, then that's kind of lame. At any rate its a valid alternate count.
We'll know tomorrow what the market wants to do. If its a wave [iii], then it should be nearly ready to move higher. There really cannot be much delay and a wave [iii] will be easy to spot.
Ok lets see what happens tomorrow! It makes sense we move higher. This would stretch the bullishness to a new level and that would seem appropriate for a P2 peak. I would be sorely disappointed if we did not, 6-7 days triangles are not easy to map so I want a nice new rally high to compensate for my troubles. Let bullishness run its course. Then reality will rear its ugly head.