SP 500 E Wave ready to rally to Bull Market Highs
Aug 14 2012
David Banister- www.markettrendforecast.com
In recent updates I have been projecting a series of ABCDE waves to take the Bull market to post March 2009 highs in the 1425-1445 ranges. The recent pullback was expected as what I was calling a D wave pullback, with an E wave to come. These final 5th waves or E waves can be extension waves or relatively benign, hence causing difficulty in forecasting the upper ranges.
In the case of the SP 500 index, we have had a strong rally from the 1267 lows in early June to 1409 highs so far (The C wave highs) and recently a pullback into the 1390s (The D wave). This next leg up should carry the market indices towards the 1440 2008 interim highs which begat the last 5 wave down leg of the Bear cycle that ended at 666 on the SP 500. A case of down the mountain and up the mountain if you will since the 2008 highs to current pricing conditions at 1404.
Once this E wave completes in the 1425-1445 ranges (With an outside shot at an extension blast to 1495) we should expect a fairly significant correction of the entire move from March of 2009. This final rally leg could top anytime between Aug 13th and August 22nd as I last updated, with potential to spill over into early September.
A close over 1409 will confirm the E wave has begun in earnest and you may want to buckle up, as it could be the final blast before some rains begin to pour in the fall.
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