This is an excerpt out of this weekend’s premium members’ update. To become a premium member, click here. Click charts to enlarge:
“Here at A.I. we don’t only look at the SPX but we follow all major indices. This allows for a holistic view prone to less errors and guessing. Given the major –pun intended- inflection point the market is at, let’s [also] look at the NAZ, NDX, DOW, NYA, and WLSH5000 [this week]. Here [on this page] we plotted the price only charts for the NAZ and NDX to reduce noise and look at what matters only: price! The first thing that struck us is the large bull-flag pattern that is forming on both indices. If we have interpreted this price patter correctly then both should gain ~20% in the coming months. Translated to the SPX that sets it at 2400. Right in line with our long term price target of SPX 2300-2500 for Primary V. [see here] Support for the NAZ and NDX is at $4900 and $4500, respectively. ~0.8% below current levels, which targets SPX 1995; bingo again!?”
For those among us that may think a bull flag is bull “peeeep”, another pun intended, then take a look at last year’s bull flag that formed on the NDX, off the November low. It target NDX 4750 and the market topped at NDX 4700, in only 5 months after the bull-flag pattern was confirmed with a break out.
As you notice, Intelligent Investing tracks many lines of evidence to determine the market’s next big move, Elliot Wave, S/R, TIs and TAs are several of them. Holistic objective analysis allows us to be on the right side of the market more often than not, without any preconceived notion or opinion. We use just the facts. Just like we did here! Do you want to be on the right side too? Of course! Then please join us here.