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iamajeya
Jan 17, 2017 1:29 PM

SPX500 Long to 2450 Long

S&P 500 index of US listed sharesFXCM

Description

My previous target was 2388 (in between 0.5 and 0.618 extension of wave 3-4). I now believe the market will show bullish moves unto 2450 before setting in for a reversal in the second half of 2017. The extreme target for this bullish move can extend to 2567 which is measured move of wave 1 and also 2.414 extension of previous cycle. Historically SPX has failed to reach it's full measured move and thereby I picked the 2450 target. If bearish tendencies persist then the 2388 or a round 2400 target may come in effect.

Hard landing is based on the long term support from multi-year lows, soft landing is based on a combination of .5 retracement and multi-year highs (resistance should act as support)
Comments
PKA
Second comment, try LOG scale on long term charts instead of linear.
iamajeya
@PKA, LOG is a good idea. As I played with it, I noticed it will make sense when drawing trendlines but did not make any difference when accounting for measured moves or Fib levels.
PKA
I agree on the upside, but to expect crashes consistently is foolish. We may correct back to 2,100-2,200 off 2,450-2,500. Expecting anything larger than 15-25% is due to the recency bias. 2000 and 2008 are not typical.
iamajeya
PKA
@iamajeya, No. Corrections are more typical, not crashes. Crashes maybe every 20-30 years are more typical.
PKA
@iamajeya, Secondly, recessions typically are corrections, not crashes.
iamajeya
@PKA, I am tending to agree on this one. Although there is a lot of uncertainty in the business environment now.
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