S&P 500 corrective rally appears complete

With today's latest jobs report, the S&P 500 has completed it's minimum pattern for a Wave 5 Black to complete Wave 2 Green. This does not mean that this is the top, but it may be. Prices need to hold below the May 6th high for this count to remain valid. The main point is to remain very cautious as the downside risks are far larger than the upside left.

NASDAQ: Nearing top of decade long correction

The Nasdaq has recently achieved a C equals A target of 1 to 1. Given that prices have recently broken above last year's top in the index, many technical analysts are calling this a breakout. I tend to believe this setup is a trap for Wave C Green to surprise with a very rapid decline. Wave C Green cannot equal 61.8% of Wave A Green as it would result in a negative price. Therefore, I am expecting a similar decline in percentage terms. The 2000 to 2002 decline resulted in a 83.5% decline. If this decline is of the same magnitude, the index would fall to roughly 413 over the coming years.