Since the October top the SPX has dropped 300, rallied 200, dropped 200, rallied 200, then dropped 200 again.
After the initial drop, just a big trading range between 2600 and 2800
The market continues to generally track as expected.
After a five wave bull market, with a subdividing third wave, from SPX 1810 to SPX 2941, the market reversed and appears to be in a potentially short-lived bear market.
Since we are expecting a three wave bear market we are labeling the first decline as Intermediate wave A, and the current rally as Intermediate wave B.
Intermediate wave C should naturally follow once this rally/uptrend concludes.
During the C we are expecting the SPX to break through the recent lows with a maximum downside target around SPX 2400 (green line).
After that the next bull market should begin.
Keep in mind we are in a Secular generational bull market, and we are not expecting it to top until the early 2030’s.