The Last S&P 500 index forecasts already dates back some time. Within the free GUNNER24 Forecasts, issue 04/23/2017, we have recognized that the S&P 500 has begun a correction at his former 2400.98 pts March 2017 alltime-high, because top has met natural GUNNER24 Double Arc uptarget in the weekly time frame.
The correction was supposed:
==> to last 11 to 13 weeks candles and to end either at 2280 index points and 1*1 Angle (ST = Sell Target) out of the Brexit Low, respective at a strong Support Gann Angle out of the Brexit Low, testing back the year 2017 opening area at 2250-2260 (ST = Sell Target) within a 21 week correction cycle.
Once correction low was achieved, the index was expected to resume its strong bull market advance into the 2500-2508 (BT = Buy Target) next GUNNER24 Major Uptarget that was/is expected to be worked off in course of August, perhaps September 2017. Within weekly 8 Candle GUNNER24 Up Setup above the first weekly close above upper line of 2nd double arc was a next strong Buy Signal (B = Buy), activating and finally confirming that the S&P 500 has to reach and work off upper line of 3rd double arc and 2500-2508 area till September 2017.
Instead correcting for 13 or 21 Fib number weeks, correction was oriented to the 5 and 8 Fib numbers, just testing back the lower line of 2nd double arc within still determining weekly 8 Candle GUNNER24 Up:
Final correction low according price was a successful backtest of lower line of 2nd double arc highlighted with the dark-green arrow. Lower line of 2nd double arc support test arrived after a very short = extremely bullish 5 week move. Afterwards price went further sideways for 3 week candles within lines of 2nd double arc, at that time still a keep back area, followed by a breakaway gap above upper line of 2nd.
This first week open and final and decisive close above upper line of 2nd double arc was strong weekly buy signal activating lower line of 3rd double arc as next important upmagnet in trend direction.
The final May 2017 low is marked by the light-green arrow, that low looks like it was a backtest of upper line of 2nd. A successful one obviously.
The next few weeks the index advanced, again oriented towards the rising 2016 Bull Angle. The 2016 Bull Angle is a support and uptrend magnet in the high yearly time frame cause it is derived from important higher final 2016 bull market low and confirmed as major bull market support by attained Brexit Lows that was first important higher bull market low in 2016.
Especially since December 2016 (lowest purple arrow) the 2016 Bull Angle seems to be the main driver = upmagnet for the bull, pulling up the index again and again. For 8 months the market has been using 2016 Bull Angle as week low support, since April the S&P 500 oscillates around the rising 2016 Bull Angle and well, why should this state change now after next alltime-high made on Friday, which in itself is a next strong buy signal??!
==> We have to assume that the rising 2016 Bull Angle magnet leads index higher till lower line of 3rd double arc will be tested for the very first time!
The last 6 weeks were marked by a truly boring sideway phase. In these weeks market gathered strength for its next bull market upleg as it seems. The recent sideways cycle just intensively tested back the 2413 green-dotted GUNNER24 Horizontal that can be derived from intersection point of lower line of 2nd (former important, cause important correction low was caused by lower line of 2nd support!!!) with the starting point of the up setup. Because the intensive test of the 2413 horizontal was obviously successful, the 2413-mark has morphed to important and usually strong support for the rest of 2017.
==> The 2413 horizontal is now a support horizontal in the high yearly time frame!
==> Market made a next alltime-high on Friday (2463.54), closing the week at 2459.27 pts. This is highest week close ever, thus the market fired some strong buying signs - once again - which allow the soonest processing of the 2500!
Ok, how could the next few days develop?
Please observe that the index closed the week to the T at a next higher important = natural GUNNER24 Horizontal Trail. 2459 pts. 2459 is still a natural horizontal resistance in the weekly time frame!
At past week low (2412.79/Monday) a next daily upcycle has started and thus daily upcycle is just at day 5 and the week fired a next strong GUNNER24 Buy Signal it seems 95% obvious that within days the 2459 resistance threshold will be overcome on daily closing base.
==> This is our signal, THE NEXT daily buy signal, that activated lower line of 3rd double arc uptarget will be tested and worked off immediately!
The lower line of 3rd double arc uptarget could be tested for the very first time in course of next week at 2499-2500 pts and/or at the week after next weeks high at 2495 pts cause market tracks his typical July pattern for now:
Source: jeffhirsch.tumblr.com
Jeff Hirsch, the Almanc Trader published the typical July performance of the important US stock markets based on 21 year history compared to actual July 2017 developments on July-12. Markets respect their seasonal requirements accurately up to day, making new July highs on Friday-14, the ninth July 2017 trading day. The seasonal chart above strongly points to a next intermediate uptrend top due for the thirteenth trading day which is Thursday, July-20!!
==> Seasonals point to a very bullish next trading week within S&P 500 might test and reach 2499-2500 GUNNER24 Uptarget on Thursday.
==> Seasonals point to the outcome that the 2459 weekly horizontal resistance will be finally overcome in course of tomorrow, at latest by Tuesday and this should fuel underway daily upcycle and the work off of weekly lower line of 3rd double arc upmagnet/uptarget either:
A) at 2499-2500 till next Friday or/and
B) near 2495 pts till Monday-24/Tuesday-25 of July.
The first test of lower line of 3rd uptarget usually should trigger strong bear forces, ringing in a next multi-week consolidation, resp. correction period with minimum 5 week duration!
Most obvious consolidation/correction downtarget for the summer doldrums is the second serious test and likely second small violation of 1*1 Bull Market Angle which arises directly from the important higher Brexit bull market low at 2360 support surroundings.
Be prepared!
Eduard Altmann