The American S&P500 index continued higher after breaking above 1185 noted in a previous post in October and reached the mentioned target in the 1215 - 1220 points area (updated chart above). A zig-zag correction ensued which may be considered a 4th corrective wave of the uptrend started from July 2010 lows.
The 5th impulsive wave has probably started at the beginning of December and may target the 1260 points area which should be reached by the end of December 2010 and beginning of January 2011.
After that a longer ABC correction may start before going higher towards 1350 points area (that will be discussed in another post). The extension of the potential correction below 1170 points area will probably reduce the chances of a long term uptrend continuation and a fall below the 1130 - 1150 points area could trigger the bear market resumption.
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