Here's a closeup of the 5min S&P chart that shows a classic "flat correction" according EWP. The "A" wave is 3 waves, and the "B" wave breaks below the beginning of wave "A". We now see an impulsive rally this morning which represents wave "C". If this count is correct, the market's rally will be capped at 1285 (S&P cash) and 11,585 (Dow cash). If both indices rally through those levels, it will negate the bearish wave count I've been holding for the past week that wave 3 of (3) is already underway. This doesn't mean it won't happen, it just means the market will rally more before it happens.
KEY LEVELS:
Dow must stay below 11,585
S&P must stay below 1,285
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