I’m hearing a lot of chatter about the S&P getting ready to make a major high and have had people ask if my work was showing the same thing. I’m going to show you two charts today. One of the SPX cash and one of the S&P futures cycles.
Now I still have some higher upside targets in the S&P. Via the SPX cash chart 1510 was my target. With that being said we don’t always MAKE the targets. The reason why I would have to also throw up a caution flag in this market is due to the fact that we have met some key upside extensions where moves tend to terminate if only temporarily, AND I also have a clustering of Fibonacci time cycles coming up either 1/18-23 or 1/21-25. Now the difference in the dates from the S&P cash vs the futures comes from the fact that the S&P cash did not trade for 2 days after hurricane Sandy!!
Bottom line, I am currently a cautious bull in the S&P. I have to be bullish because the pattern tells me to. I have to be cautious however because of the timing along with the fact that key upside extensions have recently been met. So what does that mean?? I would be trailing stops up on any long positions to just below the 1456.50 swing low via March S&P futures. Also if that low is taken out, I will be setting up the sell side for at least a trade!