The significant correction

Even the mainstream are starting to come around to the notion that the US (if not most world equity markets) are increasingly due a significant correction of around 8-12% this summer/early autumn. Whether the market uses the excuse of Greece, deflationary concerns, or even higher rates.. is not important. What is important is that a washout somewhere under sp'2K in late summer looks due

Dow' weekly'4

Summary

First things first...

I am VERY open to the notion of another wave higher to around Dow 18400/600 zone into July.. possibly even dragging out into August - hence the fib' level on the chart!

Regardless of however strong the next wave is across the next month or so, I will be looking for the Dow to break rising trend (which as of end July will be around 17500).

Best guess is for a washout in the late summer to the 16500/000 zone.

I do NOT expect sustained price action <16K under any scenario this year.. even if Greece default on their foreign debt (not domestic!) and revert to the Drachma.

With continued QE from the ECB, BoJ (the list could go on), corporate share buybacks (need I remind some about GE into 2017?), and low interest rates, I do not believe a grand multi-year top is due for another two years.
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Looking ahead

Wed' will be pretty quiet, there is only the EIA oil report, and the US treasury budget. These days though, few care about the latter.
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Goodnight from London