S&P 500 - Closing in on the top

The above chart shows the weekly S&P 500 since August 2008. I still see the rally since early March 2009 as a correction and not a new impulse, therefore I have count the rally from 666.92 to 1,219.61 as wave A. Looking at wave A you will see, that wave 1 of A took 14 weeks, while wave 3 took twice the time of wave 1 = 28 weeks and finally wave 5 was a bit short and took only 12 weeks.

Looking at the rally since the wave B low at 1,011.52. it's possible to count a five wave rally, which makes the upside limited at this point.
The ideal top for this rally would be in the area from 1,289 - 1,291. If we look at the waves since the 1,01152 low wave i took 5 weeks. Wave iii took twice the time of wave 1 = 10 weeks. If the relationship from wave A stays the same then wave v should take the same amount of time wave i took = 5 weeks, that amount of time was spend with the close on December 31 - 2010. So from a time point of view a top could be in place with the 1,262.58 high.

If a high is seen we should soon see a decline towards the 1,166 - 1,173 area.

However due to the principle of alternation it might seem more likely that wave v would take longer time than wave i and extend the rally towards the ideal target area in the 1,289 - 1,291 zone. But be aware that we can count five waves at this point in time, which does limit the upside potential from here (if any...)

The chart below is an hourly chart of the rally since 1,011.52 low (B).
The aggressive trade would stop longs out just below 1,251.48 and maybe even try a small short position with a close stop above the 1,262.58 if support at 1,251.48 gives away.
The less aggressive trade would hang on to longs for a move closer to the ideal target area in the 1,289 - 1,291 zone or wait for a break below 1,241,54 before closing longs and maybe even initiate a short position with a stop just above 1,262.58.