On Friday, the market closed @ 1293. We've got about 2 more weeks in this final fifth wave up. When I look at a chart of the S&P 500 Index, I see five (5) clear waves up since July 1, 2010. Wave I up was from 1010 (July 1, 2010) to 1129 (August 9, 2010). Wave II down was from 1129 (August 9, 2010) to 1039 (August 27, 2010). Wave III up was from 1039 (August 27, 2010) to 1227 (November 5, 2010). Wave IV down was from 1227 to 1172 (November 16, 2010). Wave V started at 1172 (November 16, 2010) and is now entering its third month.
Levels of resistance are at 1294, 1299, 1310, and 1319.
The higher we go, the greater and more dramatic will be the drop.
That's my thinking. Certainly, Wave V is the final leg up, according to Elliott Wave theory. I'm waiting for the correction. The violation of 1286 as support will signal and confirm a change in trend.
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