THE SP500 SHOULD TOP OUT AT 4,395 THE WEEK OF JUNE 18TH.
It is an OPEX week, and this level of 4,395 represents the 4.618 Fibonacci Extension taken off the Dot-Com crash lows, 2007 market top, and 2009 crash lows. So far, the Weekly SPX chart has held the green trend line ever since the Covid March lows. Every dip underneath that line has been a bear trap. These Fibonacci extensions have been respected perfectly, seen most notably at Covid lows, and the September top (to the penny). We are currently stalled at 4,230, the 4.414 extension. The last jump is about a 4% "parabolic" blow off top move.
This is NOT the FINAL TOP. Rather, this is wave 4 down within a 5 wave Impulse Wave (Elliott Wave Principle). The bottom for this correction should be no lower than 3,588, the September 2020 highs. Most likely, this bottoms out around 3,700 or 3,800 area in mid July.
It will then make one more push (wave 5 of 5 off the Covid lows) to make new all time highs (or not--it may double top). Expected top for Wave 5 is in September and/or October, during which time another significant correction is to be expected. It is to be seen if that will be a major crash, or simply another correction before more highs in 2022 and 2023 (most likely--the FED is not done supporting the markets just yet).
It is an OPEX week, and this level of 4,395 represents the 4.618 Fibonacci Extension taken off the Dot-Com crash lows, 2007 market top, and 2009 crash lows. So far, the Weekly SPX chart has held the green trend line ever since the Covid March lows. Every dip underneath that line has been a bear trap. These Fibonacci extensions have been respected perfectly, seen most notably at Covid lows, and the September top (to the penny). We are currently stalled at 4,230, the 4.414 extension. The last jump is about a 4% "parabolic" blow off top move.
This is NOT the FINAL TOP. Rather, this is wave 4 down within a 5 wave Impulse Wave (Elliott Wave Principle). The bottom for this correction should be no lower than 3,588, the September 2020 highs. Most likely, this bottoms out around 3,700 or 3,800 area in mid July.
It will then make one more push (wave 5 of 5 off the Covid lows) to make new all time highs (or not--it may double top). Expected top for Wave 5 is in September and/or October, during which time another significant correction is to be expected. It is to be seen if that will be a major crash, or simply another correction before more highs in 2022 and 2023 (most likely--the FED is not done supporting the markets just yet).