Wednesday, May 4, 2016

SPX: A plunge towards 1225 level starting at summer-autumn?

Our current view on equity markets remains bearish.
In the following charts we demonstrate our preferred scenario (based on fractal patterns) for the next couple of days , weeks and months.In the next couple of weeks we believe that market will move between 2040 and 1870. We expect a crash type of event for equities to ensue around late summer - autumn

 We believe that a quick plunge towards 1225 level is within reach. Around 1225 level lies the 0.618 fib of the entire bull since 2009 and a very old support trendline (since 1975)