One bullish count

If we assume that the top of the market is ahead of us (~1,750), then we are in one of the last legs up.

This last wave then began at the low of June 24 (1,560).

Wave-1 ended on July 1 at 1,626.

Wave-3 ended on July 23 at 1,698.
Alternatively, it ended instead on Aug 2 at 1,709.

This is where the dichotomy is:

If Wave-3 ended at 1,698 (this is where our indicators point to as well as the Fib ratios), then the run up to 1,709 is a Wave-5 that failed prematurely. In this scenario, the market drop since the 1,709 top is bearish, and the a-b-c correction we spoke about yesterday is valid. To this end, we have a 75% retracement of the 1,709-1,627 drop, which is adequate in terms of correction. Therefore, we should see the market unfold downwards in impulsive waves. That would be if for example the tapper is going to happen and at a larger degree, which will signal that the FED is pulling away the juice and the 1,709 top is very significant.

But what if the FED proceeds with tapper light or no tapper at all?

Then we are looking at the bullish scenario introduced above:

Wave-4 ended on Aug 28 at 1,627 (no overlap with the top of Wave-1).
In this scenario, we are in Wave-5 of the uptrend that began on June 24:
This smaller wave-1 ended on at 1,664 during the first few minutes of the Sep 6 trading day.
Subsequently, we have been in wave-3 during the last few days, which is about to end (has a target of 1,702-1,703, but it may have ended already).

Interestingly, in both scenarios (bullish v.s bearish), we are expecting a drop here very soon, as deep as 1,665.

So, until we have clarity of the situation, like I have also heard some big boys say, we should just wait and see how next week will unfold.

Personally, I favor the bearish scenario, but because I am cognizant of my bearish predisposition, I am forcing my self to keep an open mind to the bullish scenario.