Running Out Of Room

For now, I still maintain the primary expectation I noted over the weekend.  The current move up seems to count best as a wave 1 of (iii) in the SPX, even though it is likely one degree higher in the IWM.  And, as long as we remain below resistance, then I will still expect a wave 2 pullback into the end of November. We need to break below Friday's low to begin our 2nd wave in earnest.

However, if we were to continue a break out through resistance, and then move through 2215SPX, I would abandon my expectation for a wave 2, and adopt the dark green count, which suggests we are already in the wave 3 of (iii) and targeting 2280-2300.

So, I believe the next day or two of trading will likely settle the differences between how this 3^rd wave higher will take shape.  But, under either circumstance, it still looks as though the market is getting ready for Santa’s visit this year.