SPY UpdateIt appears that intermediate (A) had OML to give us before it was finished. Price literally moved $0.08 cents below the larger 1.236 and then gave us a reaction. We also got better pos div completing the reqs for a healthier consolidation higher. If we have in fact bottomed, then I would expect the ensuing price action to resemble the dotted line I have drawn on the chart. This doesn't mean that price will follow this pattern to the T. It is just what a standard abc pattern would appear like. Don't forget that b waves are extremely complex more times than not, so that could alter the way this pattern gets carved out. Also, the dotted line may look straight, but the structure will be far from it. People often times forget that price doesn't move in one direction, and there will be choppy overlapping moves. Regardless on how the pattern turns out, if the (A) wave is in fact complete, then the target box is the standard place for intermediate (B) to terminate at.
I expect this next move to take 2-4 months if it is to compare to the time duration of the (A) wave. There are no rules governing duration, though. Technically speaking, (B) could be over by the end of the week. The odds of that happening are extremely low, but it is possible.
