The SPX is at the top of the short term range. If the bulls can push through the 2836 line, I expect the bulls to try and close the gap at 2852-ish or even test/break the 2860 highs. The bears have to push the spx below 2813 to start to try and gather any momentum, but the really have to get it back below 2785 to see any panic selling. The bearish divergences on the daily charts are suggesting a turn lower can hit any time. Our top turn date still has some time before it hits, but we do have a "scare top-date" which is closer and I expect a larger pullback to hit then. We could get a drop before that date and then see a double top pattern into that date, or we could continue to grind higher. But until we get within days of the "scare date" I expect the bulls to continue to bid up dips-some just may be larger dips than others.
The expected top date "Black Hole" when it hits, will most likely test or break the lows from December 2018 (where our "predictive analytics model" went intermediate term bullish" We are on the side that the "good old days" are behind us (Melt up) and we are in the beginning stages of a very volatile period that will last for the next 2-3 years. We expect 10%-20% moves in both direction with a tilt to the downside when all is said and done. 2022 is when we are looking for the true low in the market and when melt ups will start again. Until then, look at the market with 2-4 month time frames for your trades and don't be scared to switch hats from bullish to bearish-bearish to bullish. We saw first hand what happens when one take that long term view. They could be up 20% on their short trade and watch it dwindle down to just +1%. The same will be true for the bulls that buy and believe we are back in the good old days and the market will never go down.
The expected top date "Black Hole" when it hits, will most likely test or break the lows from December 2018 (where our "predictive analytics model" went intermediate term bullish" We are on the side that the "good old days" are behind us (Melt up) and we are in the beginning stages of a very volatile period that will last for the next 2-3 years. We expect 10%-20% moves in both direction with a tilt to the downside when all is said and done. 2022 is when we are looking for the true low in the market and when melt ups will start again. Until then, look at the market with 2-4 month time frames for your trades and don't be scared to switch hats from bullish to bearish-bearish to bullish. We saw first hand what happens when one take that long term view. They could be up 20% on their short trade and watch it dwindle down to just +1%. The same will be true for the bulls that buy and believe we are back in the good old days and the market will never go down.