I am attempting to determine the number of factors in an exploratory factor analysis. I conducted a parallel analysis and it suggested that a model with two factors was most appropriate. However, the model fit indices fit poorly with two factors: (RMSEA = .10, SRMR = .07, TLI = .42). Model fit does not begin to have adequate until it has 5 factors. A number or recent simulation studies have suggested parallel analysis as the golden approach, but it seems that the model of the parallel analysis are irrelevant given that the model does not fit adequately. Does anyone have any suggestions on how to proceed in this situation (preferably with citations)?