S&P 500 IndexLong
Are we Close to a Bottom?
In recent reviews of long term trends, I have noticed that the 40 month moving average has marked the bottom levels for Waves 2 and 4 in long term impulse moves. Major corrections have broken below the 40 month average. The December 2018 to March 2020 marked the last major correction phase. The move from 218 to 480 was Wave 1. I propose that we are completing Wave 2 now with a powerful wave 3 to come.
I saw one YouTube presentation that showed how the market fared during tightening cycles. It appeared that the market rose after an initial sell off up until the time that the Fed "broke" the markets with interest rate hikes. Seems that the consensus is calling for much lower prices however, the wave structure appears to be wave 2 and not a major correction at this point. The three month test of the low in two weeks will be key.
I saw one YouTube presentation that showed how the market fared during tightening cycles. It appeared that the market rose after an initial sell off up until the time that the Fed "broke" the markets with interest rate hikes. Seems that the consensus is calling for much lower prices however, the wave structure appears to be wave 2 and not a major correction at this point. The three month test of the low in two weeks will be key.
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