Two weeks ago we wondered if the S&P 500 could get to 2300 (see here). Although we are still confident it will, the question is how, as the market is now at a cross roads. Either it will setup a beautiful 1,2 wave and go more directly towards that level or it will retest the August and September lows first. Ultimately both will lead to these levels and possible higher (SPX 2400+).
Or price just completed a c-wave of a large (yellow) B-wave at DOW 17,978and is now in a nasty C-wave down to below the August and September lows; DOW 15,000. See Figure 2.
What we do know is that in the first case the bull market will end mid- to late 2016, while in the 2nd case it will last into 2017. Regardless both will meet their ultimate price-targets. For now, shorter term we expect continued downside for the next 1-2 days before a significant bounce (red b on the first chart, green b on the 2nd chart) or possible even major 3 already takes hold.
That’s all there is to it for now.