SPY – Are we done correcting ?
Looking at the markets in this and last week, many traders ask themselves two basic questions this week:
According to our models the market is in correction mode, so answer your question #1 is: Yes
We are definitely not in a cycle, the market had a correction that is not anywhere near talk, so the answer to question #2 is NO!
According to our forecasting models, we still have some more downside risk all the way to 315, in case the market reaches 315, equity valuations will be very attractive to many buyers and we forecast that a new up wave will start again.