S&P 500 Target Zones Once Trend Line is BrokenAfter an extended downtrend to begin the month. The markets are set to break out of the natural funk. If minute wave 4 ended last week, we are moving up for minute wave 5. Since my original projection, the target movement levels and days for this movement to occur have not shifted too much. I forecast the top to occur AFTER the index breaks above the red trend line around the light blue circle on the chart.
The top should occur between 14:30 EST on September 12 and 11:35 on September 14. That means this week should see major moves up, before falling off next week. The target zones are broken down into 3 colored polygons. The green zone is the conservative top and yellow zone is still possible. The red zone is least probable and not worth holding out prior to selling.
The green zone is topped by a trend line of resistance that has been a strong reversal point for the previous months. The bottom of this zone is around 2913.06. The top of this zone is between 2940 and 2946 (dependent on time and trend line).
The yellow zone contains key target levels of:
2943.41
2958.30
2960.05
2966.78
with a zone top around 2969
The red zone is topped at Fibonacci extension 150% at 2973.51.
As always, I plan to re-evaluate as deviations occur. After minute wave 5 ends, so does minor wave 3. Minor wave 4 will take the index down for another week or two followed by another uptick for minor wave 5. Minor wave 5 will end with Intermediate wave 3. After this we only have a short intermediate wave 4, and final intermediate wave 5. Then the market will fall. Still looking at the final top in November, but it has shifted to middle November (after the mid-terms). This could be caused by election fallout, China trade issues, "NAFTA" trade issues, Federal Reserve rate changes, a combination of all or another event.
