Part 2: Market Update for Saturday, June 18, 2011

Looking again at the chart of S&P 500, it seems another scenario could also develop. Since we haven't seen oversold on the daily chart, I feel we should also consider the level at which this could occur. I am not sure if a broadening top is developing in which we could go as low as 1233 which corresponds to the 38.2% fib retrace from 1011 to 1371.

After reaching this level, the S&P 500 would rally to around 1400 to complete the 5th wave.
We'll soon find out which scenario develops.