Sentiment is the only thing that bothers me with the count of Minute [ii] of Minor 3. http://www.marketwatch.com/story/sentiment-barely-budged-last-week-2010-07-13 It is still quite pessimistic and if the market has a long way to drop in a Minor 3 as I have in my primary count, then sentiment shouldn't perhaps be near a major low already. So it might need even more time to work itself out.
The bulls simply need a bullish "follow-through" day, a 90% up day, to push through the major resistance. Obviously if we get that day, then Minute [ii] of 3 is pretty much toast. But it would still be a wave 2 in my estimation, just of higher degree (Minor).
Now the challenge test area comes, and if the market can clear and hold as support the June 29th bear candle on any fallback, then the door is eventually open to higher challenge levels beginning with 1100-1105 area.
78.6% Fib of the decline of the SPX is 1105. That about the "Uncle" spot for Minute [ii] of Minor 3.
I suspected Minute [ii] of minor 3 would be a desperation rally and it is.
Good luck today.