June 27th- Back to the Highs for SP 500?
Back on June 7th for our TMTF Subscribers we did a chart and outlined a probable ABC pattern showing a likely B wave rally, then a drop to 1560 or 1584. When the B wave snuck over the 61% fibonacci retracement of wave A, we though maybe it was a shallow 23% Wave 4 (1606). So perhaps the market was done with the correction we wondered…
Below is the June 7th forecast we sent to subcribers in Chart format:
However, we got snookered by the Fed notes and the market continued lower in a C wave to 1560 as it turned out. Our original hunch was right…we should have stuck with that call as we found out… but… the bottom line is we had 1584 and 1560 in our original June 7th views and they both hit on the nose…
So now what?
The SP 500 hit 1560 the 38% retracement of the Wave 3 rally from 1343-1687 on the nose and reversed.
So far 60 points to the upside. Near term we would expect a minor 2 pullback and then a minor 3 rally to the upside towards the 1680 areas… prior highs.
This wave 5 up from 1560 may be complex and hard to forecast, but we should assume at least a likely re-test of the 1687 highs in the coming weeks, and then go from there.
Here is a 2 month chart- Join us at www.markettrendforecast.com (33% discount coupon)