As I mentioned in the last video report SPX has broken above 2500+ , as of now there are both a bullish as well as a bearish count that this market can play out. At first let's look at the bullish count in Red which shows a 1)-2) -1-2-.1-.2 upside formation. As per this count we have big upside left and SPX should see 2540 + levels after giving a small correction around 2509, hence as per this count we will wait to see the correction near the 2509 level and if we see a break above 2509 after the correction then we will initiate longs for higher targets.
Now let's take a look at the bearish count in Yellow, which basically shows a Double Zig Zag structure that will have Wave W = Wave Y near the 2509 level. In short both the bullish and the bearish count specify that we are about to see a correction near the 2509 level and hence this correction will determine the direction of the market from there on, if the correction is Impulsive then it might be the start of the new leg down and if the correction is simple 3 legs down not too deep then that will give us clue that more upside is still to be see. Untill then the only trades that can be initiated are scalps for the small upside target of 2509.
Nice chart and good idea. There were very logical reasons to call a top in the 2491/5 area. The market declined to 2417 afterwards and has now risen in what appears to be a corrective wave. There's a distinct possibility that an expanded flat or expanded triangle is developing, in which case your call could be spot on as wave 'b' of one of those patterns. Above 2508 there's the 1.382 extension at 2520. There would have been lots of stops and market orders at 2500, so a pop above that level would be required to cause maximum pain. Whether 2508 is enough remains to be seen. If the market continues upwards I see the likelihood of the 2535/2565 area as the next likely stopping point for W3 and I can see reasons why it might want to go there. But in the meantime the expanded pattern is one to seriously watch for.