SP' monthly - the 'giant H/S formation' chart
Everything is now in the early stage of rolling over. There can certainly be some chop at the top of a cycle -as we've seen in the past few weeks, but the main up trend since last October is arguably over, and we're now beginning what could be a huge move from the 1422 peak to around 1100. Yep, almost a full 30% lower.
To many, a repeat of both 2010 and 2011 looks too obvious, and thus 'it can't possible happen again'. Well, as they say in one of my favourite old shows 'All of this has happened before, and will happen again'.
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To close the night...just a quick look at the Fib' levels on the sp'60min cycle
Considering the current cycle, we could easily hit 1373 early tomorrow, before the first minor pullback in this 'minor wave'2 UP'. I'd guess we do eventually move up to around the 1380/90 level in the next 3-5 days.
The daily 10MA of 1389 will also act as an important resistance level.
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Goodnight from London