In the past two years, corrections in the S&P were short and sweet. And once again the market appears to be in a correction. At this point many would ask the question ....why?
The answer is very straight forward. The top has a very similar pattern to the two other important tops, the last of which occurred was in 2007.
The discussion in the precisiontrader discussion group prior to the top was of the Dow making it to 16182, a Fibonacci number. However the market made it to a value that was 44 points short of that number.
Since the market reversed at the correct geometric point, its good enough as they say.
What happens next?.......does it go up for new highs and make it to the next reversal target which is about 8% higher?
Does the market go down until the end of the summer and then decide what to do next, after knowing more about the midterm election results?
Does it keep going down until 2017?
Time will tell