The market has now set up in both a breakout stance and a break-down stance, as crazy as that sounds. But, the region has narrowed, on the smaller degree.

Below 2175 on the S&P 500, we can count a 1-2 down which would begin our correction should we see a break of 2159 before a breakout over 2175.

However, if the market is able to take out 2175, it will likely run up to test the 2183-2192 region before it will make the decision of whether it wants to pullback in any further second wave.

As it stands right now, I am unable to tell you which direction the market will take in the short term, as the correction action in this region has clouded the smaller degree counts.

However, the set-up remains on the long side that we will likely be seeing the 2300+ region in the not-too-distant future. Again, the question is whether the market can finally break support and give us a corrective pullback.

See chart illustrating the S&P 500 wave pattern.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.