On the potentially bearish side, this week is the 89th week Fibonacci time cycle mark since the March 2009 low in SPX and other senior indexes. Could the market put in a local or major high here [i.e., -1/0/+1 week, last Friday, this week, or next week]? Certainly. And surely there are enough waves and corrective wave counts to accommodate the high.
[548pm] Futures Update Moment of truth - quite a deep pullback in the after-hour ES for the proposed wave [2] in the form of a flat. See if today's low holds.
[4pm Stocks] The primary count is that wave [1]-up of wave v-up is complete at the PM high and wave [2]-down is already in progress. Under this interpretation, expect the pullback overnight and tomorrow AM to be bought. Dropping below today's low invalidates this bullish count.
In terms of the larger count, leave room for the more bullish green-count. The following charts offer an update. See yesterday's EOD update for additional details.
