It took 17 months for primary wave [1] to play out, started from 1576 and ended at 666, a stunning 910 points and 58% decline.Primary wave [2] started from 666 in March 2009, and most likely already ended at 1080. The 6-7 months bear market rally carried SPX up 62%, the magic Fibonacci ratio 0.618. Primary wave [2] retraced 45% of primary wave [1] decline, satisfied the 38.2% minimum retracement ratio. The 50% retracement level would be 1121, which was my previous bull count target price.
If wave count in above chart for the entire primary wave [2] is correct, primary wave [3] already started from September 23 with all indexes in the process of tracing out a 5 waves down. The short term downside support will be 990 to 1000 area in SPX and 9250 to 9300 in Dow. 1040 would become a strong resistance for SPX.
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