QEII is a beautiful steamship owned by the fabulous Cunard Line, right? Well, whatever it is, here is my SPX forecast for next week:
We are now oversold on the hourly chart, if you can believe that. There is also a pretty negative divergence almost fully formed in the daily chart.
So, we will get through the brick wall of 1150 early next week. It will get the “juices flowing” as we’ll be above Dow 11k and the media will be going crazy talking about green shoots and shit.
But then, after we seem to blow through 1160, we fail and plunge. Not a great plunge, mind you, but rather a pullback to the SPX 1125 area. It will seem scary, but don’t be because that will be the opportunity to buy for option expiration and the pre-election rally.
After that we could have another extended consolidation as we move from the low-to-the-mid-1100’s in the SPX. Then should come a test of the yearly highs, but let’s take one step at a time.
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Love it. Thanks for sharing your insight – straight up
Hi Scott. Would you change your mind if instead, markets plunge and close -4 % on Monday ?
Thanks man !
A pull back to 1080 would seem to cause the most frustration to both the bulls and bears. I would agree with 1160 being a short term top if we can even hold 1150.
once again, top quality stuff…Thanks Scott!
ES 1080 to 1090 is the number I have in mind. if we get there, MOO and XLF look like they will be fantastic buys–as Ag and banks seem to be unusually weak.
Scott I really like this piece….not sure if 1060 will be hit, but 1110ishs make total sense…I think we have priced every single piece of good news in the world into the market today, just getting silly at this point. If RBA doesn’t raise rates, BoJ intervenes, BoE decides it needs QE…same for ECB we can really see one heck of a ala 2008 short squeeze in the ubber short USD.
Euro’s going with the austerity program. US looking at stimulus and QE. It will be interesting to see which program works out.
Smart money massively short the NDX, now $7.9b worth, increase of $5.2b in 1 week. Previous record was ~$4.3 billion Oct ’07 and Dec ’04.$$ – sentimentraderdotcom
Love it. I’d not plotted it out that far, but it makes sense…
Two-handed clap.