On the weekly chart, we are at the end of the business cycle( in wave 5 from wave (5) from wave (V) ). This means that the upside potential is very limited. For those who invest in the long term is very important to know, that after one more bullish wave, the market will go in a very different business cycle and the upcoming correction will be unknown for them. Be prepared for that.
On the daily chart, we are in wave 4. One possibility is that wave 4 has ended, but the structure suggests that we are in our alternative count (with dark blue on the chart above). This means that wave 4 is developing like flat or double zig-zag, another possibility is a triangle.
In this case, this upward move is either wave B or wave X. If the correction is double zig-zag wave B or X will end any moment about this level 4585p for SP500 and 35500 for the DOW. After the upward move is completed I can be more specific about the type of correction. A broke on 4500 for SP500 and 34970 for the DOW is the signal that this move up is finished
After that, it will develop wave C or Y. The potential target for this down move is 4150 for SP500 and 32800 for the DOW.
In the case that wave 4 will be a triangle there are more sideways moves without new lows or new highs. In this case, we are now again in wave B, but here wave B can be a little deeper about 4600-4680 for SP500 and 35600-36000 for the DOW.
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