The stock markets have fully exploited their upwards potential

Maybe you remember my July forecasts with regard to the S&P 500 Index? On July 16, I wrote that the S&P 500 has still some upwards potential left and could - to be more precise - should rise to 2500-2495 pts till end of July 2017 before the summer correction down to a 2360 target should start. Then the leading stock market index closed the week at 2459.27 pts and I presented you the following weekly chart:

That (2459.27) highest weekly close ever achieved fired the next important and final buy signal which activated the soonest processing of the lower line of 3rd double arc uptarget at 2500-2495 pts within up to day most determining S&P 500 GUNNER24 Setup in the weekly scale which is the 8 Candle GUNNER24 Up that starts measuring upwards at the year 2016 Brexit Low. The next chart below shows that the activated upper line of 3rd double arc uptarget = main uptarget for the bull and at same time strongest future resistance for the market was worked off on August 8 at the new alltime-high (ATH):

If you now look at the current weekly chart and the 8 Candle up, the last forecast could hardly have been more precise although uptarget was not 100% accurately worked off according the price factor. The 2490.87 ATH dented and worked off the pending uptarget 3 week candles ago on 08/08. The first test of the upper line of 3rd double arc must be considered negative, because the very first test of the lower line of 3rd unfolded a bearish reversal candle and since received ATH lower highs and lower lows in the weekly must be noted.

Lower line of 3rd double arc is now a proven and strong future arc resistance. A likely strong future falling resistance trail because there important intermediate highs have arrived and afterwards a new trend began which is likely a weekly correction cycle within a strong bull market. Lower line of 3rd is now strong resistance in the weekly trail, but also in the high important yearly scale.

==> At 08/08 top a correction in the daily & weekly time frames has started that now works off the unusual high overbought readings in the yearly, monthly and weekly time frames!

Lower line of 3rd is a so called combined weekly and yearly resistance magnet and this bear condition means for our trading decisions:

A) that the next test of the lower line of 3rd double arc should also be a negative one. Lower line of 3rd looks strong enough to deliver an important LOWER correction high at second test, WHENEVER this test is done!

B) Therefore the next test of lower line of 3rd double arc is the Gentleman`s short entry, the best selling point cause the most riskless sell, offering tight Stop-Loss placement.

C) The very first weekly close above the lower line of 3rd is a first - mild! - buy signal and that in turn is a pretty reliable signal for us GUNNER24 Traders that the correction that has begun at ATH has exhausted and the next weekly bull market upleg is underway!

Next week will be correction week No. 4 and with +90% odds this correction has to test back at least the 2413 GUNNER24 Horizontal Support. Thats nearest and strongest combined weekly and yearly support magnet below actual price. Correspondingly the 2413 horizontal now is also a very attracting downmagnet, therefore it seems extremely unlikely that the 2413 downmagnet should not be worked off and at least successfully tested back within running weekly correction cycle.

So far the correction low is at 2417.35 made at # 3-low, means this correction needs at least one more push lower and one more lower low from my point of view! Perhaps the 2413 will be tested/seriously tested in course of correction week # 5 (Fib number), thats always a normal, natural turn signal according time.

But I still expect a downtarget at round about 2360 for the summer doldrums. The 2360 is at 1*1 Bull Market Angle for mid-September 2017 (watch the nearest orange dotted ITL), and this is next lower important weekly downmagnet according price and time below the 2413.

2360 is also a quite normal downtarget for this regular weekly downwards cycle. The 1*1 Bull Market Angle was first time tested after Mr. Trump elect, it would be quite normal for the summer correction to test that most important bull support trail out of very important Brexit Low before bull market should resume!

In the very best bear case the downer wants/needs to fill the 2348.59 gap at the end of a 5 to 7 day lasting panic-wave in course of October. For now I have just 15% odds that the 2348.59 gap is filled in further course of 2017...

==> So the 2360 remains main target for the summer correction. Within the final paragraph, I want to explain exactly how I come to this target: