S&P 500 - Made it...

First lets take a look at the longer term picture. I think that major wave [B] finished at 1,219.80 on April 26, and we have seen the first part of major wave [C]. I do expect major wave [C] should ultimately break below major wave [A] at 666.79.

Now lets take a closer look at the first leg lower from the 1,219.80 high. As can be seen below we can count a five wave decline down to 1,040.78 labled black circle wave 1. Yesterday by holding above key support at 1,065.89 my favorit count (shown below) stayed intact calling for a correction higher towards the 1,130 - 1,150 area in black circle wave 2. I have to mention that a very common target for wave 2 is to the ending point of wave 4 of one lessor degree, which in this case would mean a rally to 1,173.30, before black circle wave 3 sets in.

A break above 1,103.49 should give us a rally towards the low 1,130 area, from where a flat or triangle wave iv should be seen, before the last rally higher towards the 1,150 area.

At no point should key support at 1,065.89 be broken, if it does, the correction from 1,040.78 would be over and it should only be a matter of time before 1,040.78 is broken to the downside.