SP Outlook

Today is one of the scheduled POMO days; Fed Open Market operations buying  back previously announced cusips of Treas.'s from Primary Dealers. Much of the market anticipates this money is put to work in equities/energy immediately following 11:00, if not before.
In any case there is as yet no evidence that a top is in. In fact the move down has been choppy with overlaps, typical of a corrective move accomp. by terrible volume.

click to enlarge

Short term retesting the highs sure seems likely. Longer term the C=A up off the 1000 lows at 1155 (roughly).
And while we are on the topic of impulse waves...it was very tough work describing the move down off the 1218 highs as an impulse wave, however the low volume structure up from 998 also looks like it's best described as an abc. So overall expecting more of the same...this time another abc down ...the good news is it most likely will NOT carry below 666.

And if the next abc equals the first structure down it measures to 937 from 1155.