The longer term wave count is incredibly complex and I won't attempt to perform the proper analysis of it, but, I'd like to point out that the recent juncture appears to be a terminal pattern, which would imply we might see a rapid decline and a 100% retracement of the advance from 2015's low. This is one of the possibilities we have been contemplating while discussing with my mentor, Tim West (who spotted this pattern).
It's possible the market remains sideways for a long time, so I wouldn't pass on going long at the bottom of the decline. Most people will probably miss out on that, since they might end up expecting a way larger decline, so, don't go overboard and keep expectations in check. React, don't predict.
The post pattern implications are that we must drop in 25-50% of the time the pattern took to form, and that we must cross the wave 2-4 in less time than wave 5 took.
I also added a time at mode technique, the range expansion validation target, to give this forecast an additional edge. We need to see 17595 hit within the next 3 weeks to hold shorts, else, we might be in the presence of yet another pullback and further upside continuation, which would put the terminal impulse thesis in question, since time to hit the target is limited.
That being said, I'd reccomend keeping a diversified portfolio, and not simply forfeiting all long positions, but, on the contrary, use the sharp declines in many stocks, to go long against solid levels of support like the ones provided by Tim West's 'Key support' indicator, found in his 'Key Hidden Levels' indicator pack.
Pairing this tool with the RgMov and indicators we can easily identify swing trading opportunities in individual stocks.
I'll hold my SPX shorts, and look to go long for example the Nasdaq 100 CFD in the short term, during pullbacks, but also, long quality individual stocks off key levels of support.
Stay tuned for more updates on this forecast.
I'll watch the developments here though, this is an analysis piece.
The time to reach the target is on chart, let's see how it evolves.
See my new IBB post for information, that confronts this thesis.