S&P500 ~ five wave rally rejected at internal trend-line...
Since the low last Thursday the market rallied tracing out a small five wave pattern into yesterday's high. We posted this chart yesterday labeling the rally as (ii) or (b). We thought there was a chance to add a small sub-wave today to retest the internal trend-line but price was unable to rally and instead declined enough to confirm the top yesterday...at least short term. If price did in fact top then today should be the start of a larger decline. We label the chart with (iii) or (c) because it's not clear what structure the decline will take seeing how we believe this to only be part of a larger degree correction over the next couple of months as the long term chart posted shows. The bull scenario now would be that this five rally is only wave-i and will subdivide higher before completing (ii) or (c). Obviously another move to challenge or break the recent ATH would have the potential for a strong impulse wave much higher. Follow the Trend and "Tr...