Over the past few weeks I featured the below weekly chart of the S&P500 to my premium members as it is so elegantly simple, aka KISS (Keep It Simple Stupid). One really doesn’t need to know “Elliot Wave” (albeit the wave-labels are shown according to where I prefer to see where the market is) to acknowledge the pattern that has emerged: a triangle after a long up run. Triangles are often a “healthy digestion of gains” pattern and price has already moved up and onward since. When we add these prior gains to the termination of this pattern, it points to around SPX3050. For those who follow my “Daily Market Archive” this price target is in line with the upside targets I have before we’ll see at a minimum a 20-30% correction.
Although there will be larger and larger swing (4th and 5th waves) to wrap up the current Bull Market, we will most likely see this SPX3050 target being reached nonetheless.
It is up to each and every one of us to decide how we would like to trade all of this going forward, but if you don’t have a) a plan, b) a system, c) an exit-strategy it will unfortunately become a difficult ride up and even harder down. Please re-assess those three items now, and if any of them fails don’t hesitate to contact me. I am here to help!
Founder and President Intelligent Investing, LLC
Vice President NorthPost Partners, LP