Topping is a process. Finally the topping process produced a temporary high on August 8th. We had originally projected the S&P 500 index top to be around 2478 in advance, the final top was made @2490. From the June 9th outside reversal top @2446, it took two months to advance 44 points to reach 2490. The last leg of the advance from the July 6th low @ 2407 to August 8th high @ 2490 was melting hot. It probably caught a lot people who had missed the rally and couldn’t take it anymore, so they got in at the very last of the bull leg. It could also be the folks who have been buying dips all along. Only this time the dip buying strategy is not working.
The professionals were happily re-balancing their portfolios while the market was melting hot. We sincerely hope our readers acted on the advanced knowledge of the cycle locations and didn’t open fresh positions that are highly correlated to the general market.
It is the 17th week into the current weekly cycle that started on April 13th. We project the current weekly cycle will have a downtrend for the next 4-6 weeks, which will lead us to sometime in late September. The downside target is 2405 and 2344. Most likely the lower target 2344 will be reached at the end of the correction. Stay tuned.