Is there a Bullish Case?
This is the best I can come up with, but there is a certain symmetry to it and in light of the proximity of a Buy signal from the Monthy ATR indicator, it's worth a shot:
The above chart illustrates the past 25 years of pricing in the S&P 500. Annotated upon the chart is a 10 year corrective ABC that bottomed in March of 2009. Also presented is the ATR which as of the last day of August, suggests that any S&P close above 1029.80 is a BUY SIGNAL, reversing the SELL SIGNAL given in January, 2008. The S&P 500 closed today at 1028.00
Here is a close up of the ten year long ABC correction:
What do we make of this? Looking at the previous signals generated by the ATR model, grudging respect IF 1029.80 is exceeded on the close next Monday. As for the wave count, geeziz, I had to use a Monthly chart going back to the end of the last century to come up with anything resembling a bullish EW pattern. Nonetheless, it's there.
This whole idea of a a "huge irregular corrective wave," comes from Don Wolanchuk, King of the Perma-Bulls.
Who knows, maybe he's onto something.
But I'm not on board, not yet, anyway.