Market Timing Update (5/10/10 Close)

Additional upside potential looks likely for the bounce from the mini-crash lows as
[1] Both the top bullish (P2) and bearish (P3) counts in SPX suggest additional upside potential
[2] The rally into the close has already pushed the RUT (Chart 1) into a higher high.

Here is an update on the top two competing counts shown in the pre-close update.

The first count says that the market is in P3 (Chart 3). The second count says that the market is in the final 7 small-degree-wave up within P2, with the first 3 small-degree waves about done (Chart 4) . Please see the weekend update for more details.

The squiggle counts are in chart 2.