SPX lost 4.9 pts last night, and closed at 1800. Some reasons that a quick/long correction should be happening at this level:
1. 1802-1812 is the area of the 1.618% projection of Wave 1.
2. 1812 is also the area of the upper resistance of the entire 4.5year bull market
3. Negative divergence on MACD and RSI on the daily charts.
4. Primary Wave I length in terms of time is nearing to be EQUAL to current's Primary Wave III. which will expire around this month to next month. (It's just a fun fact to match time equality, but sometimes it is a good indicator as well)
Upon counting waves, we can also clearly see 5 minor waves topping out soon, topping out Primary Wave III, or Major Wave 3 or even to as small as Int Wave iii
Forecast is still same as last week:
50% chance - 3-5% correction within Dec, then Xmas rally till end of year to early next year to finish Primary Wave III before a 10-20% drop. (SPX must not close below 1777 for this to happen)
30% chance - we have found the peak of this year, and correction for Primary Wave IV started last night.
20% chance - last night's correction was enough to extend another rally till end of year. (too bullish)( will happen once we get another all time high this week)
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