Are you feeling overwhelmed by the ups and downs of the stock market lately? As an investor, it’s important to stay informed and ahead of the curve. Here at Extreme Investor Network, we pride ourselves on providing unique and valuable insights that set us apart from the rest.
Let’s dive into the current state of the market. Since the infamous October 2022 low, we have been closely monitoring the price action of the index. Our assessment indicates that the index completed the major W-3 and W-4 this summer and is now in the process of working on the black W-5. This wave appears to be forming a contracting ending diagonal (ED) pattern, which can sometimes be confused with a correction due to its initial 3-3-3 pattern.
If we look back at the February-March rally, we can see that the index also formed an ED during that time. This overlapping abc-abc-abc-abc-abc nature gives us a hint of what to expect in the coming months, albeit on a larger scale. As we anticipate the completion of the green W-a/1 of the red W-iii/c and the beginning of the green W-b/2, we are looking for a target range of $5525+/25 to ideally kickstart the green W-3/c at $5950+/-25.
However, it’s important to keep a close eye on the market as the Bulls could face trouble if the index drops below certain levels. A break below the $5615 mark will signal the start of the green W-b/2, with further confirmation below $5555. If things take a turn for the worse and we see a drop below the $5490 level, it could increase the likelihood of going below the September 6 low at $5402.
Remember, markets are complex and unpredictable, and our assessments may not always be 100% accurate. The rally from the August 5 low could potentially be a corrective B-wave, so it’s crucial to stay vigilant and adjust your strategy accordingly. Stay tuned for more updates and insights from Extreme Investor Network to navigate the stock market with confidence and knowledge.