S&P [1-3 months view]

S&P analysis: Where do we go from here?

Despite the fund injection and emergency rate cut coming from the Fed to hold up the markets, the markets did exactly the opposite and fell lower over the course of last week.

This is what I see for now:
- If we have really completed a 5-wave impulsive EW movement up, then we are due for a 3-wave (a-b-c) corrective EW wave down.
- The current drop that we see looks like a very strong a-wave. And what we can expect next is for price to do a b-wave bounce.
- What this then means is that traders/investors should then expect a c-wave down to complete the 3-wave corrective move.
- The EW structure that I pointed out was also confirmed with Fibonacci extensions and retracement ratios. (However I personally really put the supports/resistances at graphical levels because for me, price is king.

What should we do?
- Traders/Investors should take advantage of the b-wave to cut their losing positions or to lighten their portofolio load. And to better protect themselves for the c-wave down.