Crunch Time now as the SnP500 climbs the Wall of Worries.
As indicated in past Instablog; 1426 was the Quick and Dirty Equal Move Target for the Bearish Scenario:
This is the modified wavecount as the Spx double tops:
The A-B-C Patterns are not carbon copies but that's the way the market works. Never a pattern repetition becomes exactly the same in innumerable A-B-C's or a-b-c's that I have analyzed. One thing worth remembering (most of the time) is that 'If it looks like a Duck, quacks like a Duck, it should be a DUCK'.
For The Bulls:
It ain't over till it's over.
Thus the previous Scenario still applies until proven wrong.
I sold some more SSO near the Double Top Resistance of 1422 (using Limit Sell Order a few dimes below $59.56) as indicated on previous Instablog. Will hold half of the Swing Trade (bought near the June bottom) for the Bullish Scenario. There is no way of knowing what might actually happen until it happens. IF SnP500 makes an A-B-C corrective (as illustrated on the first chart) then I will try to buy the C-wave bottom again as an SOP Trading Strategy for Flat Patterns.
Major Supports for the SnP500 are the Daily 20ma, 50ma, and the 200ma in addition to many others such as the 1371 level (May 2011 Top); the 1344 level (Feb 2011 Top which was the terminal point of a 1-2-3-4-5 rally from June 2010 bottom); or the 1357 area which is a possible support for a potential continuation Inverted Head and Shoulders (also called a Bull Face). There is no way of knowing which might work IF SnP500 actually makes a run down from it's Double Top Resistance. All we can do is either sell some long positions; protect remaining long positions with Hedges and/or Wait and Watch for better entries on the way down.
IF SnP500 keeps going up with tiny tiny pullback, so much the better for those who bought at or near the June bottom and/or during minor pullback downs such as during C-wave bottom of the Fear Trade, Hope Trade, and Panic Trade Instablog.