denmo83 and ALL - I believe that is probably true. If you look at a daily 3 mo chart of S&P you see that countertrend wave 2 is almost identical to countertrend wave four. Three days down and large white stick up. So now there is only wave 5 up to the uptrend line before the two year bear begins. Next stop is 1290-1305 S&P at the uptrend line at E.
Note the chart below of the Bullish Percents. This is a two year chart of the BPs for the NYSE. Ted Burge has rightly pointed out the NYSE BPs approximate the average BP for all sectors and indices. This makes it an excellent measure of overall market participation in any market rally or decline. Note the BP peaked at each market peak. Over the last two years there has been a decline in the BP at market tops even though market tops have been higher. This means less and less participation of the overall market as the indices have continued higher. We are at multi year highs now but the BP {overall market participation) is much lower than previous market highs. It is obvious that this cannot continue. I believe this is another sign that the markets are heading into a prolonged decline. S&P at least as low as 950.
See post # 13306 chart that demonstrates this occurance on the Compq.
Chart on post #13315 shows the bearish and bullish divergence that has occured over the last 7 years. In each case it foretold the comeing reversal. I know of no reason why this time is any different.
I would appreciate any feedback you (or anyone else) might offer. Feedback is what encourages us all to keep posting. I know this is a rather long post but I should not have to repeat any of this till after Christmas.