Last week, I was ideally looking for a pullback in the market before we broke out over 2215. However, the action during the past week may put a damper on any further pullbacks.
When a chart is set up for the heart of a 3rd wave, it usually portends a powerful move. In our case, and as shown in my long-term SPX monthly chart linked below, after a year-long consolidation below the 2120 region on the S&P 500 SPX, -0.53% the market retested that region in wave (1) of V, pulled back in wave (2) in June, rallied in wave (i) of (3) into a new high in August, and spent the next two months pulling back in a wave (ii) of (3).
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