US markets

In my previous post on SPX500 written on 22^nd February 2017,  I wrote the following  

  

1.)  SPX has negated the bearish doji in yearly chart which indicates very strong bullish momentum in the index

2.      The target for SPX will be ultimately at 3200 and unless SPX breaks below the support of the channel (yellow channel) this target should be achievable. 

The strong bullish momentum continued throughout the year and SPX is up by almost 14% since then. If we look at the current weekly chart for SPX500, the index has reached to a crucial resistance level of 2700. The index should face multiple resistance at these levels and it seems that a correction to 2400 – 2500 looks very likely. 

However, The long-term target for SPX stays at 3200 -3300 and index should resume its upward march after the brief pause which will be a good long-term buying opportunity. 

Summary:-

1.       Expect a 10 – 15% correction in SPX in next 6 months.

2.       Long-term target for SPX stays at 3200 - 3300