maroonk1- I'll let Steve answer that, but also something to point out, the SPX has retraced just over 50% of the decline, that's normal for wave B's,  so nothing has been invalidated, wave B's often retrace 62% or even more.  That said could the 'bottom' be in and we go to new highs without retracing to new lows, sure anything is possible in this market as we know and have seen in this QE driven market.  But that said - it's not really that important at the moment, last week we saw a capitulation sell off on Wed and Dojis on Thur, so shorts should have covered or significantly lowered stops.  one could also have went long off the doji from Friday's bullish morning start pattern.  

Remember my comments and these are tutorial concepts - if long from Friday, move stops up to 50% of each successive large candlestick, so if today closes like this with a large candle, I would move the stop up on longs to 50% of today's candle, notice the lines I drew in the middle of yesterday's candle and the day before?  

Also let's say that Steve comes back and says, okay the bottom was in, would you buy now or wait for a pullback?  You'd wait for a pullback vs chasing here.

Now regarding the price action on this move up, if today closes near the highs, we could have 3 white soldiers in place, that would be one for the bulls and something to pay attention to. Anyway I'll let Steve examine it in more detail