fSP500 Index what really will happen

welcome,

In the past two weeks I have read probably about 100 analyzes of the SP500 Index. In addition, appeared is a whole lot of historical charts showing the correlation to the current situation and looking great falls, similar to those of 2007.

And then came May 12, where among other things SP500 went to new highs. And suddenly disappeared from the market all the negative reviews, and more and more titles began to appear that we are in a bull market, that the effects of winter are behind us and it is expected that economic data will be even better. There are even comments "the U.S. economy begins coming back to life."

Do not try to negate the analysts job. On the other hand, I try to understand that no one noticed that the SP500 Index is actually in the course of realization the correction started 7 March. This means that the correction lasts already more than two months and in my opinion this is not the end.

Below I show a chart that I think is still correction and shown the place where we currently are.

chart 1. my correction of fSP500 Index

According to the graph, presented the correction is the called developed correction. Which includes the flat correction between waves A and (small) c, wave c on the SP500 Index ended on 4 April.

Then, there was a strong wave of downward X, which should be clearly marked as A-B-C correction. Wave X ended April 14. And this is the beginning of the start of the irregular correction. Where important factor of this correction is to realize a new low and new high. In addition, in the irregular correction appeared a classic correction zig-zag A-B-C. And at the moment we are just in the process of finishing up the wave, which is the end of wave B.

In the coming days is expected to start wave C, which is the classical wave downward with five waves of a lower order. The target range is probably 1.730 points.

The correlation with the index of smaller companies, the Russell 2000 has been completely broken. Small companies are losing in recent times and this is the strongest signal unambiguously negative.

chart 2. correlation of U.S. stock Indexes

Such an analysis like mine, you will not find anywhere. I strongly urge you to take it into account.

regards,

oscarjp