S&P 500: The Correction Came And Went, So What's Next?
Arnout Ter Schure | Dec 10, 2016 01:26PM ET
Last week we forecasted a correction was underway and that we saw support at S&P 500 2190, where price was at right then. See here. Well, clearly that was indeed the correct assessment for support and in fact all she wrote as the markets went on a tear. The breakout over the prior all-time-highs should have been bought as we suggested. As such we have update our charts and we are now in the heart of a 3rd wave: the money making wave. This is where things are easy.
Our proprietary buy/sell indicator switched correctly back to "buy, long" on Monday 12/5 and has held that signal since. We now expect the S&P500 to reach S&P 500 2175+/-5 before a somewhat larger pullback (15-25p) occurs to be followed by another rally to S&P 500 2300. What happens when that mile-stone level is reached is something for a future update, but is already known by our members: forewarned is forearmed.
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