Posting this in the lounge rather than a market forum for high-level casual discussion with a glass of scotch and cynicism. Who else thinks US stocks are about to take a narcoleptic faceplant of a correction? I've been temporarily shifting certain assets away from US stocks and funds derived from them to government bonds in anticipation that something wicked this way comes. This article does a decent job of summing up part of it: https://www.marketwatch.com/story/s...-are-moving-in-opposite-directions-2017-10-18 Beyond that I can't tell you how many times I've heard over the past few months something to the effect of, "It's coming. Not sure exactly when, but US stocks are over-valued". I contrast that with the still steady drum beat of "fundamentals are good to keep this bull market driving for the foreseeable future!" It really feels to me like I'm looking at an environment of maximum optimism among true believers and red flag waiving by contrarians. As far as I can tell, history tends to favor the latter in these kinds of cases. Agree, disagree? Are we about to see a major correction, or do you think we have gas left in this tank?
My $2-box by 3-box-reversal point & figure for SPY shows a projection of about $400 which would be SPX 4000. I don't expect it will go straight up from here; there will probably be some retracements along the way obviously, but a bear market or even a major correction is unlikely imo until SPX 4000 is reached and a distribution trading range develops.
Time to update the SPY projection of $404 (average of 392 and 416) made back in Nov 2017 (chart above). Changing the box size from $2 to $3 (to account for the higher price level) and assuming we retrace back to about $267 the new re-accumulation count gives a bullish projection to $447. $3-box by 3-box-reversal Point & Figure:
damn, i was looking for this post for like ages. finally found it! @Onepoint272 - if you're still out there and lurking. here is a biiiiiiiiiig time shout out your way! spx is now only a few % away from that 4000 level which you had called a way back. amazing call!!!
