The quick puff to 2300 price target cut the 3rd daily cycle short to 14 days. The precise rejection from 2300 price level shows market’s unanimous agreement about the price target 2300. 2300 was a cluster price target from many different time cycles. The market was range bound from 12/13/2016 to 01/26/2017. It looked like it was heading down from the range because it was in the top timing band. But it surprised everyone by jerking to the upside to 2300. This was probably pushed by the people who have been sitting on the sideline, and couldn’t take it anymore for missing the Trump trade. Rightfully, this serves as good medicine to trap them in the top.
We project the selloff from the 2300 price top will last at least to mid February and March. This coming seasonal low will be bought and it will quickly rally to April-May 2017 top. Stay tuned.