2pm update - technical bounce...still due

Well...if the blue count is correct (see sp'60min chart), then wave'4 peaked at 1334. In terms of a micro-count, we are due minute wave'4 UP of minor wave'5 - if that makes any sense! What matters is that we remain in big wave'1 down, from sp'1415....which started May'1st..making 5 lousy weeks for the bulls.


Sp'60min

Vix'60min

Summary

Looking for a VIX pullback to around 25/24..maybe even briefly 23s. I am still looking for one final VIX lunge higher to around the 29 level - with SP around 1260/40. This seems quite feasible by late Wednesday - or early Thursday - just before the Bernanke speaks.

Will the next main wave'2 UP, be started by the Bernanke speaking...hinting of 'all necessary measures will be taken'?

Stay tuned.