I know I said watch for a higher double bottom as a common setup...

I know I said watch for a higher double bottom as a common setup but...

The SP500 can be said to have completed two legs down, each subdividing into 5 waves, so can be classified as a complete ABC correction in a bull market.

Our markets and others really need a new low to make the same picture.

If the US makes a new low then it then becomes 5 waves or 3 legs down and that then becomes a nasty picture as it it implies an impulse move.

A good rally would happen at some time but suggests much more downside to come later.

So the best bullish set up would be for us to make a new low but the US not to.