A small-degree five wave advance from the November low is ending (Chart 2), around the projected area of an inverse head-and-shoulders pattern at a larger degree (Chart 3). Also note the two unfilled gaps around 1785 and 1745 during the recent rally.
From a bearish perspective, the near term price actions also complete a double three (double zigzag) structure off the June low (Chart 4), which in turn offers to complete a larger double three structure since the 2009 bottom in stocks (Chart 5).
While long term bullish counts (such as those discussed in our weekly commentaries) remain on the table, many of them also point to a short term pullback.
