The S&P500 has hit a new ATH, barely, along with a mature wave count and specific targets for how much more we can expect...




The S&P500 Index has hit a new all time high today by 1.5 pts. While the Dow Index is still lagging way behind we do expect it to catch up. If the Dow fails to make a new high this would form a large divergence between two primary indices that would strengthen the opinion of a major top forming.

Today we're showing a chart of the S&P index that we've had drawn since early this year that shows the market has been in a large "intermediate" wave (4) correction ever since the high of January 2018.

In early 2019 we showed that the wave formation looked like it may be forming an "expanding" triangle pattern that needed to finish out the D and then E wave before completing. Price went on to finish D in February this year and then the huge drop because of Covid formed the wave E to complete the triangle.

The rally form the March low is trying hard, in the face of massive uncertainty, to form an impulse five waves as the last and final "minor" wave 5 to further complete "intermediate" wave (5) from the 2009 lows.

The attached chart isn't labeled with the triangle but shows another way to count the formation as a simple 3-3-5 "flat." It doesn't matter which one you use they both have the same interpretation for what happened next which we explained in this blog and videos previously.

If the decline from the wave B top in February is five waves as we show then this is the correct wave labels. However, it is just as easy to count the decline from February as just three waves in which case it would have to count as wave E of a triangle...take your pick!

On Friday we published an update showing how the rally counts from the March low and yesterday's and today's market action looks like a small degree "ending diagonal" to finish wave (v) of [iii]. If this is correct then we should see a small decline over the next couple of days for wave [iv].

The chart shows a price high in the top right of 3466.23...the wave labels show "minor" wave 3 which was shorter than wave 1. This means the current wave 5 now underway can't be longer than wave 3 and that price is the maximum. If the current sub-waves manage to go above that price it will change the count substantially. Minor" wave 3 on the chart will become just "minute" wave [i] of "minor" wave 3. We'll deal with that when?if price can get that high.

In summary...the ending diagonal can make another high tonight and tomorrow to finish wave [iii] but, if price gaps or excellerates it will take wave [iii] even closer to the maximum target. We'll watch for the start of a small correction tomorrow! STAY SAFE

Follow the Trend
and
"Trade Safe"



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