SP'500 weekly scenarios - a bounce, before the collapse

Two weeks ago I first posted this chart. We had just hit sp'1266..and the issue was whether sub-wave'5 of big'1 was complete. Well, that certainly turned out to be the case, and this is as clear a wave'2 as I can ever imagine.


Sp' weekly, scenarios

Summary

Scenario C' was of course negated very early.

Scenario A'...I just can't imagine we break to new index highs this summer (or at any time this year), unless the Bernanke initiates QE3 next week - and 'twist extension' does NOT count as 'new money'.

Scenario B' remains my best guess. I anticipate wave'2 completion around 1350/60..maybe as high as 1380 next week. It then seems very likely this will lead into a fierce wave'3 down to around sp'1150/00 by late July.

That concludes another crazy week in market land. Enjoy the weekend

Goodnight from London