Another 4400 TOP forecast
Avi's EW forecast:
Our main support remains in the 4115-4150SPX region, as I outlined last weekend. And, this past week, the market pulled back to within 18 points of that support. As long as the market continues to respect that immediate support, I am looking for a rally next towards the 4330-60SPX region in the coming weeks, at which time, we will raise our support. Ultimately, I see this as only an initial target on our way to an ideal target exceeding 4400SPX later in June.
But, I must warn you. Based upon the structure of the market at this time, even if we do go to 4400SPX in the coming weeks, it will not be an easy climb. Rather, the structure is presenting as quite a volatile one within this segment of the uptrend.
Furthermore, should we complete this structure in the coming weeks, then I would expect a very strong reversal after this structure completes. And, I think that reversal can be quite fast and strong and target the 4166SPX region again. This type of decline will re-set sentiment to the point where we can then substantiate an expectation for a rally to 4600+ later this year.
So, in summary, we have entered into a very treacherous market environment, which will likely last over the coming two months. And, I do not see the next multi-month trending market move setting up for several months.