I had been assuming an ending diagonal count in the S&P 500 up from the August 18th low but it is starting to look more like a 1-2-1-2 type count which means there is room for another down up sequence before a more substantial correction. I admit I am not very comfortable forecasting another 'buy the dip' opportunity after a shallow retrace. I think it more useful to think about it as a warning to not get overly bearish until under 2495 SPX.

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