In last week’s “weekly digest” for our premium members, we forecasted “We see an ideal … top at SPX2174-2188, followed by a drop to SPX2250-2235 (likely the high end of the range) for … before the market continues to melt up to SPX2300 from which a somewhat larger correction (50p) should occur.” We provided the below chart with the blue arrow showing our ideal target. These price targets are based on our unique wave-tracker tables, at all relevant wave-degrees, available to our premium members.
Our forecast so far has been correct as the S&P500 struck SPX277 on Tuesday right at the upper red trendline and then started to decline to SPX2248 on Wednesday. See chart below.
Now the question remains if that was all or if the market decides to tag on another decline. The below chart shows that a possible bearish triangle is forming that could target SPX2235ish. However, there’s also good support at SPX2245ish.
In the alternate case, we can count 5-waves up from SPX2248 to SPX2272, and 3-waves down to Friday’s low at SPX2254, which would then ideally target SPX2302 for 5 waves up. After that we expect a larger decline, but certainly not the end of this bull. Not by a long shot.