If you check our previous post on the SP500 here you'll see we called the top of the B wave in back in July and since then we've moved down in a leading diagonal to complete wave 1 of C, now we're in the middle of a sharp and fast wave 2 and we believe Friday just gone marked the top of the A wave of this wave 2, we're expecting a pretty quick decline for the B wave followed by a sharp rise to complete wave C of 2 in time for the 'santa rally' but we expect things to start turning sour pretty quickly as the new year approaches and this wave 3 of the larger wave C down will get nasty, very fast. So be sensible if you are looking to go long for the santa rally, don't get caught out with your pants down trying to squeeze every ounce of profit out of this counter trend rally, because when this turns, it's going to turn very quickly and will take no prisoners.