The blue count in Chart 1 shows a completed zigzag decline from the May high in SPX. The zigzag took the form of A-triangle B-C and is thus corrective. Alternatively, the rally into the close could be a small degree wave iv as the red count in Chart 1 suggests. However, the market needs to sell-off overnight in order to avoid i/iv overlap.
According to our tracking counts, if a near term low is in place, it would be the green wave (iv) in Chart 2. The subsequent advance would wrap up the black wave 5 or green wave [iii] in Chart 2.
Bearish counts would be a series of 1s2s or a larger degree wave (4) pullback.
Please see Monthly Outlook Update (5/31/13) for additional analysis.
[1217pm] SPX/ES update -
[820am] ES update -
The first trading day of June. Please see weekend post for discussion.
