I see this correction as the first of 2 significant corrections in the next up-leg of this uncompromisingly bullish market. The uptrend should continue over the next couple of months. SPX has already climbed 300 points since the End of the Panic of 2011. There are a good 40 or 110 SPX points left in this bull market before a significant correction.
Two project targets for this bull market move are 1440 and 1510. These are based on previous significant support/resistance levels and Fibonacci Extensions.
The main scenario has a target of 1510. A wave-count is presented in the SPX futures chart below. In this scenario wave 5 of (3) is extended. The exact internal subdivisions will continue be a uncertain until towards the end of the move.
In a less bullish scenario the current wave ends in an Ending Diagonal at 1440. This scenario is not shown on the chart. We are already some way through the Ending Diagonal if this is the case. This view is supported by the negative divergence in the RSI. In this view wave 3 of (5) is extended
No comments:
Post a Comment