If this is the case then the following chart would best summarize the current Market Structure:
This is the updated version of the chart presented earlier. It means that if we did see the bottom on June 16, 2011, we will not break that low for quite some time. Furthermore, this pattern suggests that once the current rally finishes market will experience a deeper correction. This action might coincide with the release of next quarter's earnings reports in early July 2011.
The major motivation behind the triangle formation is the 3 waves nature of the overall wave structure i.e. every wave a, b, c, d and e, are all sub-divided into 3 segments. Furthermore, since 4th waves are typically triangles, this interpretation could be the right one. Finally, if the SP500 rise above 1307 & DJIA rises above 12310, it would eliminate the five wave potential for the current decline since May 2011.
In any case, I will wait for the Trading Algorithm to give a buy signal before going long because "it is better to be on the sideline and wishing you were in the trade, then being in the trade and wishing you were out of it."
Note: Trading Algorithm gave a partial buy signal today based on Market Matrix and Market Barometer Analysis.