How Far Do We Pullback?

Based upon the most immediate bullish potential in the market, it would seem that today’s pullback signals that the current bullish posture suggests that the market is tracing out a i-ii structure within wave [1] of the wave 3, as outlined in the weekend analysis.  

I want to take a moment to apologize for the typo in the weekend analysis, as the wave 2 as shown has a low at 5674, and not 5574.  Again, my apologies for the typo.

But, the analysis remains the same.  As long as the market remains over the 5674SPX level, and breaks back out over 5800SPX, we can maintain the current 1-2 shown on the chart.  In the smaller degree, the .500-.764 retracement of wave i is in the 5592-5713SPX region, which should hold for a wave ii pullback if the market has immediate bullish intentions.

Should the market break down below 5674SPX, then I have to assume we are seeing a deeper wave 2.  And, remember, until we break out over 5800SPX, the main support in the market must be the start of wave 1, which is in the 5383SPX region (when taking into account the lower low struck in the futures).

Should the market continue higher in the coming week and break out through the 5800SPX region, then we will raise our support to the wave 2 low in the 5674SPX region.  Should we see a break down below that support after a break out over 5800SPX, then that would be an initial signal that a major top may have indeed been struck.   But, until we see a support break, I have to continue to look higher to a bit north of 6000SPX before this bull market finally puts in a major top, being represented by the alt V in yellow on the 60-minute chart.