The decline in US stocks since the start of 2022 has been choppy and strictly in Elliott wave terms could be a correction within an on going long-term bull market. Long term sentiment and momentum evidence which have been noted in several of my prior posts strongly imply a major top in US stock was probably made in January 2022.
This SPX chart illustrates a developing complex correction which could have more downside action.
The rally that began on 06/17/22 is now the longest in time and the largest in price since the drop began in early January.
The current rally is probably Minor wave "X" - after its completion the SPX could be ready for a significant drop.
My minimum SPX downside target is 2,800.
Time target for "X" wave top is 08/17/22 to 09/01/22. Price target for "X" wave top is in the low 4,300 area.
Technicals and fundamentals eventually collide imo. Legislation that imposes a minimum 15% corporate tax is the beginning, along with increased spending will not bode well for Shareholders as the market creates value for shareholders and stakeholders imo. Let's see what the rest of the month brings. We are at an inflection point in my view. GLTA! Who will win? Longs or Shorts or Traders?
HelioHelix
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I was working on my count just before I saw this and have a similar idea, thoughts?
markrivest
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@HelioHelix, Hi there are several alternate wave counts. I may soon illustrate another wave count.