The markets have started to correct, but for how long is arguable at this time. I would love to see this wave structure finish and push south, but the fact remains, a diagonal wave structure could be starting so this market can still push much higher. We need to see a small correction and then push higher again if the present bottom is going to hold for a little while longer.
Any bullish phase could head up forming a double top along the way as this market is trying to fool us again. Don’t get me wrong, this market can go south dramatically, but that would be the easy thing to expect. For this SP500 to leave us with a clear Cycle degree top, is just too simple or easy to accept at this time.
The small bullish move we’ve had in the last few days has to completely retrace itself, before it can be called a completed zigzag. My updates will be a bit short at times this week, as many other wave counts need attention as well.
For now we have to see if this rally has legs, but if it does not, then only a complete retracement of this move would be acceptable.