Early stages of a bull run in Equities

Under the bullish count, wave 3 of a larger wave 3 (the strongest part of a move) is likely to start soon. It may start from current levels, or ,with equal probability, from 3% lower - around 875 in S&P500 futures, as low as 8500 in DJI futures, around 4700-4650 in DAX futures. I would use such levels as excellent entry points into longs.

There is a somewhat remote (at this stage) possibility of a move to new lows. Looking at large cap stocks individually, as well as some of the more volatile sectors (homebuilders, financials, basic materials) I cannot yet see that as more than about 20% likely. Crucial levels for a bull move are the low of last Friday at 817, however I would get quite concerned if we see anything close to 855.

The USD is continuing top building process, I expect levels in the high 1.30s on EUR/USD soon. Copper and Crude oil are also bottoming.