I'm going to be stubborn on this case until we see the whole set of waves complete. I do believe we are running a descending expanded leading diagonal, which started at the top of May 2015 and is still being traced out. We are about to complete wave 4 which is a double zigzag, with a minor subwave 5 missing.
I don't expect new tops in SPX but I expect us to approach the top once again (possibly hitting 2100..2010 area) in the next few days. Then we need to see a sizeable sell-off in w5, which I expect to be bigger than wave 3 in August. The reason for this is the % of bears, which is now the lowest since Feb (opposite to August situation where we started the decline with a large number of shorts in place already).
Essentially, wave 4 served to convinced everyone once again that the stocks were going to advance forever. This is exactly what bears need, and their time is coming again. First, bears will start going short, then those who have been long will start to close longs, then the same earlier longs will start to go short. Enough fuel to stage a massive decline. We gonna need some fireworks here.
1730 is the final target (confluece of 1.382 extension of w4 and hitting the major trendline at the same level). I expect the decline to unfold quite fast, and we should be done by mid Dec. Then then Fed will announce more Q.E. instead of rate hike and we are off to a new bull party.
Patience is Gold. I like those inline tickers :))
I don't expect new tops in SPX but I expect us to approach the top once again (possibly hitting 2100..2010 area) in the next few days. Then we need to see a sizeable sell-off in w5, which I expect to be bigger than wave 3 in August. The reason for this is the % of bears, which is now the lowest since Feb (opposite to August situation where we started the decline with a large number of shorts in place already).
Essentially, wave 4 served to convinced everyone once again that the stocks were going to advance forever. This is exactly what bears need, and their time is coming again. First, bears will start going short, then those who have been long will start to close longs, then the same earlier longs will start to go short. Enough fuel to stage a massive decline. We gonna need some fireworks here.
1730 is the final target (confluece of 1.382 extension of w4 and hitting the major trendline at the same level). I expect the decline to unfold quite fast, and we should be done by mid Dec. Then then Fed will announce more Q.E. instead of rate hike and we are off to a new bull party.
Patience is Gold. I like those inline tickers :))
