How Much Higher Will The S&P Go Now?

As we discussed last week, the $SPX appeared to be in a wave B triangle.  These can see an overshoot, especially in sub-wave E, and we saw a bit of a short squeeze last week and price broke out of a range.

Now the question remains, how high can this overshoot go?  Well, even if this is is not a triangle, a wave B can still be a .618 Fibonacci retrace, so there is room to the 4320-4400 area (GoldenZone) before we may see a turn back for a wave C down.

The market saw two days of upside squeeze into Opex (options expiration) last week and so far we are seeing a lack of commitment on either side to take a stance. With the holiday coming up, we will continue to monitor the price action and see if there is any clarity into the summer months.

Here is a video with more explanation:

Dr. John