Elliott Wave Update ~ 9 July 2013 - S&P 500 ~ Elliott Wave

Everything is going according to our primary squiggle count. The target for Minute [ii] is the 78.6% retrace Fibonacci mark of about 1661 SPX. This is also where (c) = (a).

There could be one more down and up - such as a hard gap down tomorrow that gets bought in the final subwave v of (c) of [ii]. On one hand, there is enough squiggles in place to consider the count done.  On the other hand, 1661 is still the target so we have to give the market the benefit of the doubt.

Our FTSE count needed more time last week to produce a proper "three" and it now has done just that. All markets seem ripe for a nasty - and probably largely unexpected - decline. I say unexpected because it seems complacency is prevalent at the moment.

Here is the current headlines on "Marketwatch:"

"Stop worrying and learn to love higher interest rates
Commentary: You’re wrong if you think that rate increases over the past month are bad for stocks."

"• Trading Deck: This market wants to go up — here’s the evidence"

"• The Technical Indicator: Charting an increasingly bullish backdrop"

"• Market Snapshot: Hopes for earnings put S&P 500 near all-time high"

That's a smattering of how bullishness is back. A stock market that has gone up almost 100 points in less than 3 weeks will do that.  Incidentally, interest rates will be bad for the economy and stocks. The old "paradigm" of rising interest rates = bullish economy will prove to be bullshit. Just ask the Greeks.

S&P 500 ~ Elliott Wave Count ~ 9 July 2013