The S&P has proven itself a safe haven over the years and will likely continue doing so. There are a ton of reasons why the markets should collapse, nonetheless here we are rallying into the sunset. Taking a step back on the logarithmic scale we can see the pattern clearly. We are in the midst of a 3rd wave up with plenty of room to run... but where to?
Near term and long term targets below.
Using the Fibonacci extension tool we can overlay a road map to the next destinations. No surprise there is a near perfect match.
The Near Term Top
The 2.618 level above at 4,500 is an area to pay attention to and is the current near term target. My strategy continues to be 'buy the dip' all the way up to these macro levels using the 1 hour chart with an RSI set to 10. However, 4,500 on the S&P does not look like the end of this cycle.
The Long Term Top
My long term call for the top is around 6,660. Not only is it sandwiched in between the last fib extensions. It is a historically significant pivot point.
No, I'm not a conspiracy guy but I do think it's hilariously entertaining that the major pivot points all happen near 666 levels. Looks to me as if the market is flying towards 6,660 like a bat out of hell.
Trading is risky. Don't do it.
Live trades with entries and exits will be updated on the post linked below titled "S&P 5,000,000"
Long:
MES futures
+ a basket of other equities
Near term and long term targets below.
Using the Fibonacci extension tool we can overlay a road map to the next destinations. No surprise there is a near perfect match.
The Near Term Top
The 2.618 level above at 4,500 is an area to pay attention to and is the current near term target. My strategy continues to be 'buy the dip' all the way up to these macro levels using the 1 hour chart with an RSI set to 10. However, 4,500 on the S&P does not look like the end of this cycle.
The Long Term Top
My long term call for the top is around 6,660. Not only is it sandwiched in between the last fib extensions. It is a historically significant pivot point.
No, I'm not a conspiracy guy but I do think it's hilariously entertaining that the major pivot points all happen near 666 levels. Looks to me as if the market is flying towards 6,660 like a bat out of hell.
Trading is risky. Don't do it.
Live trades with entries and exits will be updated on the post linked below titled "S&P 5,000,000"
Long:
MES futures
+ a basket of other equities
Comment:
2.618 macro fib level hit at 4500.
Comment:
Until that MACD balances back out the most likely scenario seems to be some time killing chop under this fib level. Until traders are ready to front run the next political promise. When this fib level is cleared it should trigger a run to the 6000s
Comment:
Now over the hump it looks like a nice base will need to be built before traders would feel comfortable adding to positions and allowing the rally to continue towards the $6000 level over the next couple years.
Comment:
When enough dips get bought off and above that 2.618 level it will propel higher on the "end of covid" narrative. Probably lots of boring sideways trading until then in which dividend payers would be better investments.
