FM WEALTH MANAGEMENT NEWSLETTER
The next larger target in the S&P 500 is in the 2800SPX region.
At this point the only question we are asking ourselves is question is
if that target will be achieved in 2018 or 2019 and the answer is
dependent on the support in the 2518-2548S PX region.
The market is currently preparing to rally up towards 2610SPX region. We are expecting that this will set up a larger pullback from that region. The ideal target for us to see would be a pullback to the 2325 to 2400 SPX region.
In order to get to that pullback region, the market has to break below the 2520-50 SPX support level. If this does not happen in the coming months, holding support in that area could continue to propel the market towards the 2800 SPX region sooner, which means we will see the 2800 region on an accelerated timetable.
Our preference would be for the market to pullback towards the 2325 to 2400 SPX region. But, if we see that next few months that that is not the case and the market does not break below the 2520-50 SPX support, then we highly suggest that you not fight the market, and recognize it for what it is – just another opportunity to make money on the long side.
The market is currently preparing to rally up towards 2610SPX region. We are expecting that this will set up a larger pullback from that region. The ideal target for us to see would be a pullback to the 2325 to 2400 SPX region.
In order to get to that pullback region, the market has to break below the 2520-50 SPX support level. If this does not happen in the coming months, holding support in that area could continue to propel the market towards the 2800 SPX region sooner, which means we will see the 2800 region on an accelerated timetable.
Our preference would be for the market to pullback towards the 2325 to 2400 SPX region. But, if we see that next few months that that is not the case and the market does not break below the 2520-50 SPX support, then we highly suggest that you not fight the market, and recognize it for what it is – just another opportunity to make money on the long side.
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