The market is sending me clear signals that the top has been put into place at 1573.66 on the S+P 500 this week.
We’ve had our correction estimations at 15-20% all along, so now that we have an actual swing high to calculate from we can project the downside targets for covering short positions and getting back in long for what should be one more tremendous rally to another new bull market high.
This downside projection is highlighted on the weekly chart of the S+P 500 above. It comes in between 1337.62 and 1258.93. I’ve been leaning all along to around an 18.7% correction as I’ve mentioned in previous posts. I’ve highlighted that exact spot with the big green horizontal line coming in at 1279.39.
Regardless, the market top is in and defensive we must be.