There was a nice down move today in the S&P 500 which works well the top suggested in yesterday's update. In the short term a bounce should be coming, but should be limited to the 61.8% level above (wave [2]) even if a different impulse count lower is actually the correct one.
Prices have been rising within a channel for a long period of time. Breaking under it and breaking under the 1260 level will be bearish developments. It will be critical that support levels are taken out in the coming days and weeks so validity can be provided to the bearish case; in a trending market the market always trends farther and longer than people expect.
For reasons discussed here for the past days and weeks, a completion of the rally since late November is likely going to lead to a multi-week correction at the least.
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