If the market follows the historical pattern into the next week, the week of the 4th Friday in December is even more bullish as discussed last week. See Chart 3 and Chart 4.
We track the current rebound (tentatively) as wave (c)-up of [e]-up of the proposed expanding diagonal triangle in SP500. Under this interpretation, the December low is wave (b)-down of wave [e]-up (Chart 5). An alternative scenario is that wave (b)-down is not complete, a wave c-down of wave (b)-down to retest the December low should do the job.
The latter scenario would "buy" the market some time to finished the large expanding EDT in the March/April time frame discussed before. In both scenarios, current upside target remains at a marginal high above 2102.
Chart 6 and Chart 7 present the two scenarios at lower time frames. The blue count tracks the immediately bullish scenario and the green count tracks a potential retest of the December low.
