S&P 500 Index May Tumble 05/18/12

Today's 15 minute ES Futures chart, top chart above, shows two three-wave moves between the Pivot and S1, both calculated using 24-hour data. Bears still control the market.

On the S&P 500 index Weekly chart above, we can see that a 50% correction of the last up wave is around 1249. So far, the market isn't falling as fast as it did last year following a topping, Head and Shoulders formation. We will have to wait and see if a 50% correction entices some long term buying.

Charles