SPX and Dow has already reached our target upside for its short term downtrend lines. SPX or S&P500 has already reached 1700 level and looks to be quite weak.
Now that upside has been hit, we are now focusing on the possible make or break of US markets to the upside or to another correction.
We are actually above and in the new All-Time-High territory, but a breakout must have more than 2% rally into the upside with a tolerable amount of gap, but as of today, it seems so weak,and a false breakout to new all time high will lead us again to a decline, and a gap up means 2-5% rally to new highs.
Based on Elliot Wave count, we may:
a. finishing the minor wave 5 of Major wave 3 of Primary Wave III, and continuation decline/correction of major wave 4 is coming, with downside of 5-12% (raised to 70%)
b. mini wave 5 is on the line,and 4 more minor waves up before we see major wave 4 correciton (30%)
Percentage is based on the chance regarding the overall market conditions. Any breaking news may affect our forecast.
PSE unexpected broke out of 6600-6630 level and reached our first resistance at 6800, the stronger resistance at 6877 is just around the corner,but didnt able to visit it yet. TEL is major driver into PSE market, with its exdate in Aug, PSE could float above 6600 until TEL gives out it's dividend.
PSE also retraced 61.8% of its correction. A strong resistance area.
There is NO buying recommendation for PSE yet until we hit 6600 level or below. For now,what we do is profit taking on most conglomerate and property/energy stocks.
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