This chart shows the basic form of an ABC 5-3-5 zigzag. If correct, it would be the final zigzag in the P2 pattern.
Some evidence of rotation in the markets. REITS were up again and the NASDAQ showed some strength.
Its getting closer to the point where a breakout above 1113 could take place. This breakout, if it were to happen, would coincide with a Minute wave [iii] of Minor C. Today was a new high in both the SPX and Dow. The Wilshire5000 didn't confirm nor the Nasdaq yet.
There were 5 waves down from peak today. There are several ways to count those little 5 waves:
1. Its an (a) wave of an (a)(b)(c) pullback in a Minute [ii] zigzag
2. It was a c wave in a wave (iv) expanded flat of [i].
3. It was...well it was the tiny start of something bigger down....heh
My chart shows it as Option 1, but it could be option 2 if we get another pop higher tomorrow in a wave (v) of [i] move.
As far as option 3, you can see the market is at a decision point. Do we break out of gyrating around the 1000 mark? Or are the bulls spent and sentiment is reaching an extreme?
But like I said, it sure seemed like rotation going on today so that supports the more upside in a wave C of (Z). We have key areas to watch of course.