Here are a couple of charts from 2013 which reflect what I believe the current market structure to be.
Green wave iii topped out at 1850, which was a little higher than the mark I had on the chart, but it was still expected. I had green wave iv around 1720, and it bottomed at 1738 before the next leg higher. This chart was published on July 10th, 2013.
The above chart showed one possible path the market could take to reach the wave 3 target of 1920, which was an expanding diagonal triangle. At the time of publishing, the market was overlapping so it was a viable option at the time. Either way, the forecast was the same. Higher levels to come.
We are now getting near the to wave 3 target published. It has the ability to run up to 2100, but I don't believe it will do so quite yet. There are significant cycles aligning for an interim top in the market. We must be diligent and look to the trees (daily charts) to pinpoint these reversals.
The VIX Cycle low is due on Monday, March 10th. The Spring Solstice is the following week, coming on March 20th. The SP-500 is currently running up the the 50% fib fan line, once these lines break they are very tough to overcome. Fib Fan in yellow:
I will be on the lookout for the green wave iii high in the coming sessions, with a retrace down to 1740-1650 probable.
