Sp' weekly - 3 scenarios
Sp' weekly, bullish outlook (the wave'5 idea)
Sp'monthly - primary outlook remains bearish
Summary
Today's 20 point gain in the sp'500 was a good start to the bullish near term outlook (even if its a wave'2 up). First targets are 1340, then 1370/80. The weekly 10MA @ 1368 will also be a soft resistance level to the advance. Its certainly interesting that the 1370/80 level would make for an ideal level to bounce to, before a collapse wave'3 in June.
I think we'll know if the 'wave'5 chart idea is correct, if we are higher than sp'1340 by the end of this week. If we are higher than 1352, that would make for a bullish engulfing candle on the weekly chart - matching the very same style of candle seen after wave'2 completed last November. It would be VERY bullish, and highly suggestive of new index highs by late June/July - perhaps as high as sp' 1440/60.
So...that's something to keep in mind for the rest of this week.
Goodnight from London city.