Weekend Update: SPX in the final machinations of it's top
The SPX has been strong. Despite the economic reports, The Fed raising interest rates, COVID-19, Monkey Pox….it’s like another Sequel of the Mad Max Movies out there. We topped right at the 1.382 Fib last week and retreated. Typically what happens is a move down to the 1.0 at (4048) then a final rally to the 1.618 or even the 1.786. The target area for this top in wave IV is 4300-4400.
As we are topping I anticipate the economic news flow to be relatively good to benign. The psychology behind a wave IV is a battle between “We’ve Bottomed and The World is Ending” Always the extremes carve out the patterns in corrective waves while cooler heads sit on the sidelines or stay invested. I believe the “The World is Ending Camp” will get some small moniker of respect towards end of the month-beginning of September as we begin our final descent.
Final Target for the SPX is 3200.
Best to all,