We are still following the outlined path and I'm still expecting us to finish this correction in the 1320-1325 range.
After that we should head north on our final rally leg of the rally since March 2009.
As of this moment, I expect that the final rally will reach around 1410-1430, but it is possible that we see new all time highs before we head back down, but it is not the highest probability at the moment. Following that rally, the forecasts get pretty dire and I will get into long term targets for that this weekend, but the last scare we had may feel like a cakewalk compared to this one.
Here's the S&P chart showing us following the direction I had outlined and it looks like we will hit the bottom of the channel on Monday or Tuesday. That is our reversal spot. If we break below that channel (below the blue line), we have to re-evaluate the longer term Elliot Wave counts and consider that we may have already topped the rally from March 2009, but that is only an alternate view if we happen to collapse below 1320.
S&P 20 day / 30 minute;
2 comments:
I like the 1430 target. New highs would be problematic.
New highs would mean McHugh's new theory is possibly right and we haven't even topped Supercycle Wave 5 yet.
I will post the charts showing the large multi-year megaphone tops that he's basing that on and that gives new highs possibility.
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