If the S&P closes below it's 50 WMA ($3000) on Friday, May 29th, we could be in for a LARGE correction down to the ~$1520 region. Why? So much confluence at that level:
1) Last two major recessions (2001 & 2008) had market tops in that range (High monthly candles for both recessions closed around $1520)
2) In each of those recessions, price fell below and the came back to retest the 50 WMA. Both were rejected and fell 50%. A 50% drop from current 50 WMA level of $3000 gets us to $1500
3) The 50% retrace level from the bottom of 2008 crash to the ATH for the S&P is at $1520
4) The 1.618 extension of the initial move down in March, also takes us to $1500
Will that $1500 level act as a magnet? We'll know soon enough!
1) Last two major recessions (2001 & 2008) had market tops in that range (High monthly candles for both recessions closed around $1520)
2) In each of those recessions, price fell below and the came back to retest the 50 WMA. Both were rejected and fell 50%. A 50% drop from current 50 WMA level of $3000 gets us to $1500
3) The 50% retrace level from the bottom of 2008 crash to the ATH for the S&P is at $1520
4) The 1.618 extension of the initial move down in March, also takes us to $1500
Will that $1500 level act as a magnet? We'll know soon enough!