Sharks, I agree with you about Martis's trendlines. (Sorry...

Sharks, I agree with you about Martis's trendlines. (Sorry Martis but your trendlines are rubbish.)
Here's an alternative view using the SPX.



The SPX looks quite bullish with my Computer labeling the recent 2134.72 top a wave (3) on both monthly and weekly charts.

On the monthly chart, wave (2) retraced between 0.382 and 0.5 of wave (1), which is typical for wave (2) and bullish.

Wave (3) comfortably exceeded 1.272 and fell 79 points short of a 1.618 extension of wave (1), which is quite bullish.

Interestingly, the DJIA gave a warning penetration in Oct-2014 that the wave (3) top was approaching.

Wave (4) has only just exceeded a 0.236 retracement of wave (3) and is well short of the 0.382 level which is very bullish if the retracement is over, but the Computer is expecting more downside.

If there is more downside, a close below the wave (1) top 1370.58 would cause the entire move from 2009 to be reinterpreted as an ABC correction and Martis's abyss scenario will come into play.


On the weekly chart, the recent H&S rounded top looks quite similar to the 2011 top with both left and right shoulders being 21 and 20 weeks apart respectively. The first down-legs also look similar.

In the up-move from 2011, the recent wave (3) came within 42 points of a 2.618 extension of wave (1), which is quite bullish.

The precise nature of the 4.236 extensions I showed in post #15899994 in wave (4) could mean that this ABC correction is over, which would be very bullish, but there could be more downside ahead as there was in 2011. If the market can hold above the lines of red crosses on both charts, there is hope for a wave (5) up-move yet.

There is much bearishness around and the logic is hard to fault, which of course is what is needed to drive the market down, but is the end of the world nigh?

For several months now, my investment gremlin has been urging me to get back into the market and I can't help feeling that he's sitting there on my left shoulder whispering quietly, "Go ahead punk, make my day!"



We await.