This unusual behavior follows the decline into the June low which behaved in every way like an intermediate-degree decline, save for the absence of a failed daily cycle. We have now witnessed two scenarios in the past four months in which the cyclical setup necessitated more downside. Rather than forming failed daily cycles, however, those declines halted abruptly, giving birth to screaming rallies.
In fact, the equity market has not formed a failed daily cycle in nearly a year. This unusual behavior cannot endure, and I believe these screaming rallies... this most recent pop has added 100 handles to the S&P 500 in under eight sessions... are part of an end game. The Fed's no-taper decision has not made the stock market bullet proof, but rather acted as a catalyst for the blow-off phase of a cyclical bull market.
Stocks are also 16 weeks into an intermediate cycle. With an intermediate cycle low due sometime in the next eight weeks, I expect this latest rally to fizzle quickly and lead into a surprisingly-sharp decline. Keep in mind that "quickly" references only the time aspect of this rally. Stocks could very well top SPX 1800 before this all ends, but either way, I expect a top within a couple of weeks.