I see us in a 4th wave now..so backing and filling confusing everyone is the name of the game. 5230-5250 is resistance..If it manages to get above that, 5350 is the next one. I dont think it will get there but closing above that will be very difficult. So a 5th wave is pending to new lows - Break 5050-4950 range and we will get to 4800-4700 range very quickly..Likely lower.
Till the 80 week low is set in the November timeframe, downward pressure will be there - I would not expect any major rally before that. So short the rallies with stops is the way to go. Also make sure to keep position size very less - we can never know when rip roaring short covering rallies will occur within bear markets.
See attached chart. Looks like a descending triangle to me. So 5230 area is strong resistance. Short with stops around that level in rallies. As always do your own due diligence.
The important retracement levels of the whole rally from March 2009 are 4768, 4285 and 3801...Important numbers which may be possible targets for the upcoming 80 week lows. We shall see as we get closer.