Futures have pulled back testing this breakout. If the breakout fails to hold support, a sharp selloff is a high probability.
If support can be held on the Wilshire5000 - roughly 14,560 - then it will be able to challenge and make new recovery highs. If support fails, then there could be a violent selloff reaction resulting in a wave (iii) down.The bear count is again simple. If support fails to hold, downside surprise is possible. It would be labeled wave (iii) down.
Its actually a good price point for a short entry attempt. If support fails then good gains can be made. If support holds then the stop would be today's price peak.
The CAC is a good proxy perhaps for what may happen overall with European and American markets. The CAC is likely in a wave [ii] bounce which means the American markets likely will bounce further also. Which means a non-confirmation if the SPX manages new highs above 1422 and the European market do not.
The GDOW is also telling a wave story. 5 waves down from the recent counter-trend high like the CAC.
Weekly Wilshire shows the big picture. major divergence on the RSI and total volume drop-off is just sickly and MACD history bars are on the verge of negative.
If the Wilshire can continue to push up we have resistance spanning from the recent 14,951 - 14990 (2000 peak).