http://stockcharts.com/h-sc/ui?s=%24SPX&p=D&yr=0&mn=6&dy=0&id=p38955316076&a=266398464

Friday’s near 400 point rise in the Dow strikes us as a striking confirmation of the b wave we spoke of a short time ago (http://www.edwards-magee.com/ggu/alphabetazetawaves.pdf).  Now, although we could question whether we are out of the box, or whether a bottom has been put in, we think scaling in is in order.  One thing your conventional  analysts never think of is, if it goes against you you get out and limit your losses, which is what we will do.

As is usual in this formation there will likely be a c wave to test the previous bottom.  A long term position would put a stop 2 or 3 % under the previous bottom.  A tighter stop would be 2 or 3% under the Friday low.  These are tactical stops, not system stops.