Many possibilities going on. I am still looking for the completion of Minor B and I assume it has not yet finished.
The best guess is a flat is playing out for Minor B or some kind of triangle that is yet unfinished.
There are some good arguments that the market just keep going up from here in a quick burst peak that has everyone reaching for the moon and then the legs get cutout from under.
And then of course everyone expecting a "cruise" to the finish line for 2009 may indeed allow stocks to drop quite far. Who knows. But you really cannot expect too much of a better setup.
Sentiment is getting back to where one would expect at a peak. I don't have the info at my fingertips but this would be an argument for a quick peak instead of dragging out for a few more weeks.
Lemme ask you this, who wouldn't short stocks at a higher level, say 1150 or 1200? So why would they comply with the move?