Minor wave 1 up from the SPX bottom at 1810.10 was followed by a Combination wave 2 that exceeded the orthodox peak
of wave 1. In this case the measurement is made from the actual peak at SPX 2120.55.
The growth rate from SPX 1810.10 to 2120.55 is 17.10%
When there is a wave "four" Horizontal Triangle the projection of the wave "five" termination point begins at
the end of the Horizontal Triangle. Not the low point of the triangle, which in this case is SPX 2532.
Adding a growth rate of 17.10% to the end of the nine wave Horizontal Triangle at 2604.43 targets SPX 3049.78.
This is almost an exact hit of the longer term main Fibonacci coordinate of 3047.33!!!
A cluster of Fibonacci coordinates in the SPX 3032 to 3079 area implies a powerful .
It would take a lot of power to break above this resistance.
If this wave count is correct then the SPX has just begun a post trinagle thrust up for Minor wave 5.
This implies a strong and steady rally into May 2018.
Thanks for the comment. If a trade war develops it will be bearish for stocks.
Usually stocks move ahead of the fundamentals, we could start to see early warnings of this if the SPX goes bellow
what I have listed as wave "I". Then if there is a move below the March 28th and March 23rd bottoms, this could
be a strong signal that something more bearish is developing.
The major support remains the February 9th SPX bottom. I stand by my prior writings that a
breach of SPX 2532 could trigger a crash down to the November 2016 bottom.
What happens next week will probably set the tone for US and other nations stock markets in the next two months.