Another Way To Look At It

One thing that the S&P accomplished from 7/27-8/1 was it created a large shelf of transactions around the 1383 area.  There is a ton of volume there representing an area that the market felt was fair price.  Interestingly, it also coincides with a 78.6% Fibonacci retracement from yesterday's 1354.65 lows to the 1391.74 highs.

With futures up so strongly overnight, this may be one of those times that the markets prove yet again that news doesn't really matter in the end and that the collective inner workings of investors minds -- as a whole -- does. 

I may have also found another way to label the waves that could project another high.

I am noting that the A-wave and the C-wave could be equal in price and structure, each one containing a smaller a-b-c, the second of which could be forming now.  The entire structure would remain a large A-B-C correction terminating around 1400.

1354.65 would be the stop for this scenario.