Blue box targets are close to being met on the RUT, COMP, NDX100. Arguably the DJIA and SPX and WILSHIRE met their blue box targets on the previous rally of 7 trading days ago.
Overhead resistance is again coming into play.
One mega-up day does not guarantee the market is on to bigger and better things. It needs to follow through and hold the gains and stage for the next leg(s) up. But look at this Wilshire chart below. Upon reaching this level in November, it required a large consolidation. It is overbought on the hourly just to get here. A wave [ii] (or 2) peak does not necessarily need big rollover. Look at the October peak, that sucker rolled over rather quickly.
The SPX has big gaps at 1056.74 - 1059.34 and then again at 1075.64 - 1079.13. That is over 6 points of gap up in the last week. Those are bear targets and they have not been forgotten.
3 different charts, 3 slightly differing counts. All pretty much imply the same thing.
When the SPX was floundering at 1100 and topped at 1104 a little over a week ago prior to the plunge, at the time, there were some subindexes that were pretty lame and did not retrace high enough to call a solid wave [ii]. More importantly, both the RUT and NASDAQ did not challenge the blue box area that wave two's seem to retrace to as a minimum. Now they are close to painting a recovery high inside their blue boxes.
The NASDAQ actually makes a nice expanded flat with a (b) wave low at 2100. There was no subwave two from the pink (a) down to where the 2100 low resides so that leg probably counts best as an ABC down.