And where we're going.
There was some concern about the last round of directions. So to answer them, first, a photo of a finished EPS sweater:
Yes, there is more than 100% of stitches on the needle. You'll need that extra fabric to put your boobs and shoulders into. It is supposed to be there. (As I recall, you should be in the neighborhood of 138% right now, but don't fret if you're of by an inches' worth of stitches.)
Yes, at the moment, the arm pits are giant gaping holes. That's okay. We'll be grafting the arm pits shut as part of the finishing. Think of them kind of like inside-out sock toes, if that helps. (If it confuses you, forget I ever typed it.)
We will begin decreasing all those extra stitches again quite soon, and quickly; eight stitches every other round. It creates the perfect shoulder for a casual sweater.
All is well. You're doing fine.