Attached is the 4hr S&P futures chart. It shows why I think a significant bottom might be in. The projected wave (4) has entered the territory of wave (1) which is a big rule violation in EWP. Are there there other alternatives to still offer a bearish scenario suggesting another major selloff, yes, but this is what we have now so I'm going with it for now. But as you can see, this rally has been pretty straight up and needs to correct before it moves higher..............IF it moves higher. Also notice the MACD momentum indicator at the bottom. There is a major bearish divergence building which acts like a rubberband and when it snaps it will be a strong snap that should shoot this market downward long and fast. So in the short term I'm bearish the stock market will option protection. Once I see the structure of the decline it will help me determine whether it's a correction and the market will move higher, OR if the market has resumed its downtrend. So, to sum up, I"m short term bearish the stock market waiting for clarity regarding the larger trend.
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