Wave 1 of 5 is complete--we are in wave 2

24. Sept. 2015

How wave 2 resolves itself is anybody's guess, but as soon as this correction is over, look for wave 3 to terrorize the bulls. My target is roughly under 1800 for SPX. A typical stopping point for wave 2--if my count is right--would be about 1950--it could be more or less, but that's typical. Also, it might take another day or two to complete. On the other hand, if I'm wrong, we could go directly lower. With TRIN now in the 60s, it's hard to imagine much more upside at this moment. That said, we could have an A-B-C wave 2, which is my favorite interpretation at this moment. So back down to 1925 or so and then a wave C of wave 2 up to 1950 or so. I'm not playing the long side here. GL