On April 23rd 2022, we posted this chart stating that the S&P would hit 3320 for a completion of a harmonic pattern. At that time S&P was at 4297 and today is it at 3585.
How did we see this coming?
1) There was a massive reversal sign on the weekly timeframe showing that it had topped at 45xx.
2) The huge harmonic pattern setting up
3) Massive divergence on the weekly chart
What is the call for the next 6 months?
When you look at the chart, there is an imbalance between the move up (18 months) and the drop 8 months. This would mean there is more pain to come for those who still believe in stocks and this index will continue to drop and it may drop sharply.
Here is what I would call.
1) S&P will continue to fall and find support at around 3255.
2) This will be a good place to buy but with a mindset of selling.
3) The price will bounce between 3255 and 3500 and then eventually break below.
4) April 2023 we will be around 2900 -3000.
Until there is clear reversal signs on the Weekly chart, I will not call this market bullish which is likely to take another 12-18 months.
Would love your thoughts and comments.
How did we see this coming?
1) There was a massive reversal sign on the weekly timeframe showing that it had topped at 45xx.
2) The huge harmonic pattern setting up
3) Massive divergence on the weekly chart
What is the call for the next 6 months?
When you look at the chart, there is an imbalance between the move up (18 months) and the drop 8 months. This would mean there is more pain to come for those who still believe in stocks and this index will continue to drop and it may drop sharply.
Here is what I would call.
1) S&P will continue to fall and find support at around 3255.
2) This will be a good place to buy but with a mindset of selling.
3) The price will bounce between 3255 and 3500 and then eventually break below.
4) April 2023 we will be around 2900 -3000.
Until there is clear reversal signs on the Weekly chart, I will not call this market bullish which is likely to take another 12-18 months.
Would love your thoughts and comments.
