“Less is more.”, “No need to change the winning team.”, “Forewarned is forearmed.” Great sayings that mean nothing is you can’t back them up.
Well, starting late-February we already warned of an impending intermediate-term market top and correction, which we then backed up again early-March. See here and here. We then showed the weak weekly charts in early-April, see here, and since it’s been quiet because nothing has changed our POV. Not last week’s unconvincing rally either. Hence, why “less is more”, why there’s “no need to change the winning team”, and why “forewarned is forearmed”. Our members therefore have stayed on the right side of the market for most of the past 2 months.
So what’s next? As said, no change in our POV: we still expect SPX2300-2280 for the next important low and next larger rally. See the hourly chart of the S&P500 below. It’s very detailed, as the devil is in the detail, but simple focus on the (grey) minute-waves and (green) minor-waves.
Price has advanced rather overlapping from the SPX2329 low into the ideal SPX2362-2382 zone for minute-b and came on thursday with 0.13c of the lower end (50-76.4% retrace of the prior minute-a wave; down from SPX2378 to SPX2329). Now minute-b can certainly extend a little higher in further advancing fashion, but based on symmetry with the previous decline for all of (green) minor-a to SPX2322, 46-35-68p, we expect minute-b to not go much higher as it already has rallied 32p. Symmetry then also targets around SPX2300 for minute-c of minor-c.
This fits well with the following, as we should now focus on are the green and grey arrows for the anticipated minute-c and minor-c wave; respectively. Their lengths are Fib-based and we see great overlap in the SPX2300-2280 zone. We therefore continue to expect a low in that zone, and will alert our premium members intra-day when it has been struck and when we get an ideal A.I.-buy signal as we did late-June and early-November last year (See green solid up arrows on the daily chart of the S&P500 here).
When do we expect the market to bottom? Likely early-May as our next Fib-based trading interval is set for May 2 on the S&P500 and May 1 on the Dow Jones. In addition, there’s a Bradley Turn date set for April 29.