I posted this analog nearly 2 years ago and it continues to be incredibly useful for where we are headed - straight up! Looks like we'll see 6500 sometime next year!
I have shared this Analog view 3 times previously citing the likely plunge to Covid Highs and then a possible fierce rally to SPX 6400. I looks like it's playing out and this is definitely a hated rally. If you ignore the news and the calls for recession, pullbacks etc. you will see a steady rise is possible as data supports a steady economy and lower inflation...
10 months ago I shared this ANALOG idea as a possible path for the SPX crash and although, as with all analogs, the path differs, directionally we got down to one of the projected lows (.50 fib). The open question is when or not there is a lower low (.38 fib) to 3300 or whether we sky from here. Since the path down was a slow zig zag, the path up in either case...
The plunge is mirroring the projected path from my last update. I believe that the VIX, price action across various individual stock charts and indices are pointing to a possible 25% plunge in this index from here. NFLX down 20% on earnings is a prime example of it doesn't take much to reach that goal when the SPX is being driven by a few stocks i.e. AMZN, TSLA...
If you go back to the 2008-2009 drawdown you can copy the pattern from that decline in earnest to the low at 666 and a subsequent multi-year move out of the low to new highs. The yellow shows what a compressed scenario would look like where we go back to 3400, spend a year retracing back up to 4700 and then create another powerful advance in the coming years....