Let’s See How We Pull Back
I have left the wave count as the top is in place simply because the market is quite full in its wave count. However, there is an argument for this rally off the Friday low now being 5 waves up. Yet, I cannot say that the bottom made on Friday was a clear 5-waves down to complete a [c] wave.
So, due to the fact that the structure into the recent high is quite full and I have a hard time counting a complete 5-waves into Friday’s low, I am presenting it as a b-wave, with the rally today being a c-wave, completing a [b] wave flat.
Of course, in order to make this a much higher probability, we will need to see a decline begin in impulsive fashion. If so, then I will still be looking for a [c] wave to potentially test the upper support.
However, should the next pullback only be corrective in nature, then I will have to view this as another extension setting up, which is likely pointing us next to the 6150SPX region.
Therefore, we will need to see how the next pullback takes shape after this rally completes. If it is corrective in nature, and we then break back out over the high we strike in this rally, then we are likely pointing to the 6150SPX region next. But, if the next pullback is 5 waves down, that would be wave 1 of the [c] wave, and we are potentially setting up to test the upper support region in the coming days.