It appears to me that the likely topping pattern we are witnessing could be part of a very significant top formation, to qualify as "generational top". Based on the my interpretation of Elliottwave Principle, the cycle that began back in 1929 , probably formed a major top of wave 3 in 2000, and all the intervening price action since 2000 till August 2011 low could be contracting triangle wave 4.
If this is correct, then we might have just seen wave 5 top on 19th May 2015 high. The choppy price action could just be an early development of major cycle that could last several years with possible downside target retesting the 2009 low. Should this scenario play out then it could be very devastating and at the sometime offer us opportunities to benefit, if provided we are fully prepared to take advantage.
1. Potential ( ) close to breaking down.
2. Have several Fib confluence,
3. Momentum divergence at several degrees.
4. May 2015 top lines up with time symmetry (see chart below).
5. Several sectors started topping from mid 2014 with the main Index grinding higher due to strength in ever reducing number of strong stock making up the S&P500
If you wish to learn why I have come this conclusion then and what can assist you in getting fully prepared please register for a free webinar I am hosting on Saturday at the link - http://www.danv-charting.com/live-webinar.html
Warning: This is my interpretation of price action using TA approach that I consider helps me the most but could be completely wrong. Therefore as always, do your own analysis for your trade requirement and ignore my views.
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So for now as long as the May 2015 high holds I am happy with my counts and if it gets taken out then I will review accordingly.
Hope this helps.