Remember how I said Robert Prechter from ElliotWave international is typically always wrong? I hope he's not this time. Today he came out and called for all shorts to be 'pulled in'. I think he's calling the wave counts the same. In other words, we're on the verge of this 'B' rally.
The market overall is always going up. Just pull up a 100 year chart and the trend is overall up. The move down we're in now is a pullback within a long term trend. Pullbacks in elliotwave terms are defined by 3 waves where the main trend is in 5. The 3 wave pullbacks are known as 'ABC's. The first being an 'impulse' corrective wave called 'A', with the 'B' being a correction of that and then the final leg 'C' wave to complete it. Typically you see the 'C' wave equal the length of the 'A' wave known as 'AWE' or 'Alternate Wave Equality'. Some PHd made that up, I'm sure.
The A and C waves being impulse waves are made up a 5 waves and the 'B' wave 3. It's like its own little 'ABC' wave.
So, knowing all that, you can clearly count 5 waves down from Aug to now. We're currently in the midst of a wave 5. That should complete the 'A' wave. The next leg is the B wave which when you do fib retracements from the A wave could take you to as high as SPX 1100 for a 50% retracement. Then it's potentially SPX 500 to 600 off that if you consider AWE theory. But that's down the line going into next year.
