SP500 reached and exceeded the projected target of 1719 this past week (see Gap Dynamics (9/13/13) ) but immediately pulled back to 1708.89 from Thursday’s high of 1729.44. What’s next?
 To some extent, Friday’s higher highs in Nasdaq indexes challenge Thursday’s highs in other indexes being a major high, end of a five-wave advance. See Chart 2 red. Chart 2 also offers two additional near term tracking counts on NDX. See A look at NDX (7/19/13) for analysis of larger-degree counts.
 If Thursday’s high marked the end of a five-wave advance, the mid-cap SP400 index represents a rare failure (to make a higher high). See Chart 3. Note that barring a change in market characteristics, SP400 has been a higher beta index in recent years.
To reconcile these developments, it’s prudent to consider the following possibilities:
 The near term pullback in stocks is a small degree fourth wave. The prior neckline (Chart 1 green) offers potential support. Wave five will deliver a higher high.
 The correction since the May high is a skewed triangle, with the near term pullback as wave E of the triangle. The post-triangle advance will deliver a higher high.
in addition to the possibility that
 A five-wave advance from 1628.05 in SP500 is over. A pullback or a reversal is in progress.