Wave 3 took off as projected and it appears wave 4 just completed at the end of trading on Tuesday with a perfect 61.8% retracement of wave 3's movement. The next question is where will wave 5 lead?
I project wave 5 will occur by the end of this week, which means next week could have some downward movement. Before that drop lets look at the top. My maximum movement could be a 215% extension of Wave 3 which would bring the S&P 500 up to 2780.35. This seems quite extreme and would require 20-30 point moves each day for the next 3.
The most likely extension will be 138.2% of wave 3 which would bring the index up to the 2754 mark. My minimal projection would be around 2745. I am positioning for a move between 2745 and 2760 over the next 3 days.