The primary count is Minor wave 2 up. But just because we have called for a Minor 1 price low does not mean market bulls will rule the day and we'll see unicorns and rainbows. The SPX is probably due for a scary bout of selling sooner or later. The Intermediate (2) rally from March 2008 to May 2008 certainly had its rough moments.
For instance if the market experienced a wave (ii) of [a] of Minor 2 pullback of 50-60%, the market is looking at testing 1100-1110 support. Will that happen? I don't know. We can only chart a squiggle at a time. In general once we confirm wave (i) of [a] of 2 has topped we can look for perhaps as much as 50% pullback toward the 1074 low. That would be "normal".
Squiggle count as I see it now. I use the Wilshire for form.
Here is a smaller breakdown and it looks impulsive up from the low as we projected was due if this is Minor 2 up.
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