Well, all good things must come to an end, and it appears such is the fate of intermediate wave (3) of primary wave [1] of Cycle 3. It has produced some fabulous returns under the Alphahorn Swing System. Such as for FAS, which the Alphahorn Swing System signaled a buy for on 12/24 at $62. And, what a Christmas present FAS has turned out to be. FAS is up a whopping 75% for those who took the signal with Friday’s close of $108.20.
However, for a variety of reasons, which include the EW counts I’m going to share today, I believe the markets are about to take a much needed breath after quite sprint to these lofty heights. The micro count could have room for a tiny push up on Monday, or it could have concluded on Friday; but, for the SPX specifically early this week we should see the pullback to 1340 (cash) begin. Below are charts for the SPX and RUT
And here are my more detailed counts for the BKX, and Nasdaq Composite
Will these wave counts play out? Or, will the more bullish alternative counts that imply an SPX price of 1440ish before a meaningful pullback? Time will tell. Best of luck to all, more to come.
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