The Next Pullback Tells Us How Bullish We Need To Be

There is not much more I am going to add to the update I presented this morning.   While my primary expectations did not provide for the rally to take us this high this early, it was an alternative I provided yesterday afternoon.

Just to refresh your recollection, that more bullish count suggests the high-level consolidation we saw earlier this week was wave 2, with this rally today being wave [1] of wave 3.  For now, this still remains my alternative count purely due to the fact that the wave 2 consolidation in this count was VERY shallow.   In fact, it did not even attain a .236 retracement level.  

However, should the market provide us with a corrective pullback in the coming days, and then rally back over the high we strike in this break out rally, then the market will force my hand and I will have to adopt this more immediate bullish posture.  Such a break out back over the high of wave [1] would signal that we are likely in wave [3] of 3, which has a minimum target of the 1.382 extension of waves 1-2 in the 6010SPX region, but can easily extend to the 1.618 extension in the 6077SPX region.  The entire 5-wave structure would be projecting to the 1.764-2.00 extension in the 6118—6186SPX region.

But, for now, I am still going to maintain the prior count, and simply view this as wave [5] of wave 1.  Unfortunately, it would take a break down below yesterday’s low to confirm this wave count.

So, as the title says, the next pullback will tell us how immediately bullish this structure is presenting.