What is going on part II

Whats going on part II would be a suitable headline for this post.

Trying to count every little squiggle since the 9,917.99 top has now more possibilities that I care trying to figure out. The best thing to do rigth now, is to step back an let the market eliminate all the least possible and leave us with one or two top counts.

I still see very strong resistance near the wave iii of 3 top at 9,794.37, which could halt this upmove for a new test of important support at 9,430.08 and even more important support at 9,252.93. A break below 9,252.93 will be the final nail in this bear market rallys coffin...

S&P 500 is also back testing its small trend line from the low of wave X. As is the case with DJI we could easely have set the top with the 1,080.24 test, but we will need a break below 1,020.22 and more importantly the 992.25 support to confirm that.

If however 1,080.24 is broken to the upside a rally to the cluster of resistance from 1,120.88 to 1,132.99 could be seen.

* At 1,120.88 we will meet the 50% correction of the fall from 1,576.06 to 666.92

* At 1,129.36 red wave c will equal red wave a

* At 1,132.99 the red zig-zag will equal the back zig-zag

VIX has broken out of its wedge calling for increased volatility, but again we must accept one final move lower towards 21.50 as long as resistance at 29.56 stays intact. A break above 29.56 would confirm, that the S&P 500 has put in its top.

We can count five waves down since the 89.62 top, but as long as resistance at 77.48 isn't broken to the upside we must accept one more fall down below 75.87 and maybe even closer to support at 74.54, before a firm bottom is in place. But a bottom is close at hand.