Signals

Short term signal: UP - it will turn down bellow 1675
Intermediate term signal: UP - it will turn down bellow 1662
Comment: The strength today and five waves impulse means that this should be a move of a bigger degree. So no lower low with divergence and perfect move. It think yesterday was 20 week cycle low ant the next 20 week cycle which is the last one in the 18 month cycle has begun.
Short term - 5 fives expect more upside
Long term - If all the indicators, divergences, cycles etc. work:) this move should not last more than several weeks and top early in the cycle.

Bottom now is bad for the bulls if you ask me. Why? Because it looks like buy the rumor sell the news... When the big boys want to move the price higher they want to buy cheap push the prise lower, negative sentiment, debt ceiling problem and buy cheap when all are depressed and start a rally. When the big boys want to sell they will push the prise higher to sell higher, buy the rumor everything will be ok and push the price higher, the problem is solved, sell the news at higher prise and leave the bag holders cry.
To cut a long story short - I expect move up until 17.October, an exhaustion bar after the debt ceiling problem is solved and a top not long after that.

Watch price behavior for clues:
- another leg lower - the move should find resistance around 1710
- fake break out and this is the bottom - reversal candle and strong rally moving above 1680 <- that is what we see now.

Levels to watch SP500:
- 1710 - resistance
- 1670-1680 - resistance level
- 1627 - support level
- 1598 - is major support.