Being that the short view is so tedious, we thought we would take a look at the long view.  It may surprise you, but the bull market which started in mar09 is alive and –we might argue– well.   Although that contravenes the tedious description.  We are presently in a side wave of that market, brought about by the breaking of the mar09 trendline.

http://stockcharts.com/h-sc/ui?s=%24SPX&p=D&yr=3&mn=10&dy=0&id=p98583139935&a=214966864

As can be seen here, using the basing point system, we would have to penetrate 1754 to signal a bear market.  From here that would indicate a 18+% downwave.  Play and variation will occur between here and there.

Meantime the PnF system looks for higher targets.

http://stockcharts.com/freecharts/pnf.php?c=%24SPX,PWTADANRBO[PA][D][F1!3!!!2!20]

Namely 2579.  We are confident that this target will be achieved, we just don’t know how much pain and irritation will be endured first.

And pertinent to that, the contrarians are firmly in control of the market and we are in with only a toe.