I don't believe this insane crack driven rally is over yet, but I do expect a pullback Monday. The levels to look for are 1040 SPX, and if that breaks then look for 1020 (although I don't expect 1040 to break on Monday). The rest of the week should be down. After that, I think the rally will continue higher to the magic 1100 number.
The Bulls are not going to stop until that level is achieved. Too much of a pullback here will prevent them from re-gaining control, and pushing on up. That's why I think 1040 will hold. Once the 1100 mark is hit that should be the top of P2, and P3 will begin.
I'm looking for a move down to 900 area before any serious retrenchment back up. I'm guessing that this will be wave 1 down inside P3. Of course there will be up's and down's on the way to 900, but the larger 2 wave up should occur at that level.
As for how high the wave 2 up goes... well I think that will depend the strength and speed of it. If it moves up fast and with heavy volume, then the 50% or 61.8% Fib number should be a good point of the wave 2 peak. If it moves slower, then it might only make it to the 38.2% or 50% level.
After that move is done, then wave 3 down of Primary 3 should begin. That's when the bulls will be getting slaughter by the hundreds! Steak... it's what's for Dinner! Yummy!
