It's a little too early to tell with 100% certainty, but it is looking very likely that we have just completed primary wave 1 down.

With primary wave 2 right at our doorstep (if not already begun), the stock market is poised for a MAJOR rally.

From a time perspective, primary wave 1 down lasted from October, 2007 to now, or almost 18 months.

Primary wave 2 up will not be over in just a few weeks. 61.8% of the length of time of primary wave 1 is what I would expect primary wave 2 to last.

That's more than 11 months.

78.6% of the length of time of primary wave 1 would put primary wave 2 as lasting 14 months.

So I wouldn't be looking for a top for at least 11 to 14 months.

That would put it (again, assuming primary wave 2 is starting right now) somewhere in the time frame of February, 2010 to May, 2010.

Using the same ratios for points (61.8%), primary wave 1 dropped from 1576.09 (intraday high on S&P500) to the recent low of 666.79 (intraday), or a loss of 909.30 points.

61.8% of 909.30 is 561.94 points. Add that to the recent low and you have a target of 1,228.73 for the S&P 500.

Those are my time and price targets for the primary wave 2 rally within this mega-bear market.

We've got a very nice rally ahead of us. Let's enjoy it and make some profits on the long side.