"The count is very bullish on spx if we are topping or have topped a wave 1 of an ending diagonal that would target the 1590/1600 area hopefully done on internal technical fumes if we get up there....we can't rule that out at the moment ......HOWEVER.....if we hit 1561.80 SPX BEFORE a decent pull back to the 1533/39 area...............that would be a HUGE warning to me that 1530 is going to fail to act as support and we have put in a substantial top with a bull trap having been sprung on an inverted H&S pattern failure. (Failures will usually come at about 33% of the way to target) Coming down to that 1533/39 area and holding before we hit 1561.80 keeps those higher targets alive."
Here's something else to think about...OEX 747 streamliner.
Just in case we aren't topping here....the .786 retrace @ 747 just might be the magnet....would put spx 1600 plus...more like 1610....if that's the case...then topping or topped a wave 1 of an ED would make sense on spx.. If OEX takes out 706 south before another high...I'll be turning bearish for the IT.
Click Here to see Full Sized Image
