Tentative Sign of Longer-term Peaks in Equity Markets

Equity markets peaked five trading sessions and 1.1% higher than levels indicated in my last post.

The form that the decline in S&P500 took appears reasonably impulsive, and suggests further downside.

Shown on the daily chart below is my projection for the S&P500, which I expect to peak below the previous peak, probably later in the week. What should follow is a rapid decline, likely to very strong supports around the 1225 level.

Equity and Risk Assets Correction imminent

I maintain that equity markets, represented here by the US SP500 index are about to turn around and fall hard. What I believe to be the final (!) (quite a statement!) squiggle higher, towards the top of the proposed 1320-1330 topping zone materialized today.

This hourly chart has the same count as yesterday.

Here I break down what I believe to be the final wave higher. I really struggle to see how this market can move any higher without a substantial correction first.

Equity and Risk Assets Correction imminent

Equity markets, represented here by the US SP500 index are about to turn around and fall hard.

My view is shown on an hourly chart of the SP500, below. I find it very difficult to see the index advancing significantly higher for much longer. My projected topping zone is between 1320 and 1330.