Overextended Market- Part II

The S&P500 SPY ) has reached a short term top at around 312.3, the last few days have declined slightly but with increasing volume , this means the market is trying to correct the previous run-up, the correction is a good thing, markets don’t move in a straight line, rather, a healthy move is composed of a major trend( up in our case) and many countermove corrections, which, again, indicates normal healthy trend, now that the market is finally starting to correct (a move we have anticipated in our last outlook), we believ its building a healthy move to the upside, using Fibonacci levels to try and forecast the correction depths we estimate it to be 304-306 correction level and then a continuation to the upside, we maintain our former forecast of 320-325 as a long term target for the S&P500 , open long positions at 304-306 levels with tight stop loss and take it from there.

Trade Safely,
Alon

An Overextended Market Part II , AlphaOverBeat Market Outlook by Alon_AOB on TradingView.com

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