The scenario that S&P is in wave 4 and a new low below 1290 will follow, is still very possible. S&P move from last low 1295 is not impulsive. From 1291 low the index has made 3 waves up. Wave relationships follow wave rules. Wave A is equal in size with wave C. However there is the possibility that this upward 3 wave move is just wave A, as the time it took to unfold is smaller relatively to wave 2. Moreover a wave relationship near 1350 exists and this may be another target area. All this stands as long as 1291 low holds. If we see 5 wave down breaking that low, then wave 4 will prbably have ended. Wave 5 targets are found below 1270. The most possible target for wave 5 is 1255 where wave 5 is 61,8 times of wave 1 to 3. 1270 target is where wave 5 will equal wave 1. 1235 target is where wave 5 is 1,61 times wave 1. Again I will have to remind you that 1357 (wave 1 low) should not be overlapped if this is a wave 4. So adjust your trading stops accordingly.
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