In late 2015 and early 2016, we were following a pattern in the S&P 500 Index which was pointing to levels over 2,500, potentially targeting the end of 2017. In fact, as we have been saying for a few years now, our ideal target is between 2,537-2,611, which could be met as early as the end of 2017. That’s about 15% higher than today.
Currently, the market has micro upper support in the 2,235-2,245 region. And, as long as we remain over that support region, the market is set up to take the more direct path, first targeting the 2,330-2,370 region before its next larger consolidation. However, should we see a break below that upper micro support, it opens the door to the more scenic route, whereby we will test the 2,205 region before the next rally phase can set up.
The bigger picture still suggests that the market is going much higher later this year.
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