S&P (SPX): Trump Bump? Important Levels To Watch Coming Fast!

1 de ago. de 2017

For the last 7 months after the inauguration of President Trump, we have seen the S&P rise and make new highs. This is the so-called "Trump Bump" which the President falsely takes credit for claiming that it is because of him that the S&P has been on the rise. This ignores the fact that for the past 7 YEARS since 2009, the S&P has been on an absolute tear rising higher and higher and making new highs for the last 4 YEARS! This fact seems to be ignored by Trump in his rush to take false credit for the recent jump in the stock markets. See this Monthly chart and you'll easily see what I mean! And really, this "Trump Bump" was setup by the policies of the previous administration and not due to any policies of the current administration of which there hasn't been any of significance. Just rumours of them.


As a technical trader and seeing things from a technical standpoint therefore without any political bias that may taint fundamental viewpoints, what is happening these past 7 months is that we may have an ending to a very powerful wave 3 coming soon. Something that so many fundamentalist economist have also been predicting but saying that there is a "bubble" in the economy coming. I don't know nor agree/disagree about there being a "bubble" but what I do know is that the wave count makes it quite clear that we are looking at the end of this strong impulse wave up to come soon. Maybe within this year but most certainly sometime next year if not this year.

Look at the main chart I posted above and you will see that first, I have marked out a broken barrier triangle (not an elliott triangle!) in which I have also marked the profit target of that broken triangle. That profit target is very near to the very strong psychological 2500 level. However, I project that we should see 2500 broken but probably not for long before we see prices fall back down through it and we see 2500 hold.

Also notice that we had a completed crab earlier. You can also see the PRZ levels marked on the chart. Prices are already testing the crab PRZ zone and are now heading near to the 3.14 fib extension. But you also see that the 2500 level lies past the 3.14. I see prices actually heading up towards the 3.618 extension before ending the wave iii.

Those are the important levels to watch. As always, just because it reaches those levels, that DOES NOT MEAN you should automatically sell! PATIENTLY WAIT for price action to prove to you that this very strong up trend is ending before you take any action!