By Avi Gilburt, ElliottWaveTrader.net
Last weekend, I wrote an article entitled "The Market Is Going To Crash." The response to that article garnered over 55,000 hits on Seeking Alpha, which is about 4-5 times the reads that I normally get on a stock market update.
This gives me anecdotal insight into where the overall sentiment is in the market today. It seems most investors are leaning quite bearish, and are looking for articles that support their own bearish bias.
And, as I noted last weekend, I am sorry to disappoint all of you who have a bearish bias. You see, the market is likely going to be heading over 3000, and potentially even over the next 12 months.
While I am sure you were taken in with the common expectation that the President’s abandoning the Iranian deal was going to tank the market, it seems the market never got that memo. Yes, we have yet another reason the market has ignored while it continued to climb higher. At this point, you would think that investors would be used to this if they have been paying attention in 2016 and 2017.
Last weekend, I warned you not to get too bearish if the market was unable to break support early in the week. And, while the market remained over my cited support early in the week, we then rallied up to our next higher target in the 2720SPX region.
While I have no set up at this time which suggests that the market is going to see any major downside follow through, the market still retains potential for retesting the 2600 region again. But, in order to do that, we will need to see a break down below 2693SPX early in the coming week.
Without such a break of support, the next higher target I have for the SPX is in the 2765SPX region for the coming week.
Lastly, I want to remind you that my job in my public articles is to give you guideposts so you can understand which path the market will likely take in the coming week. And, your guidepost this week centers around 2693SPX, with the 2765SPX region as the next upside target, whereas a break of 2693SPX suggests that we will likely revisit the 2600SPX region again.
See charts illustrating the wave counts on the S&P 500.
Avi Gilburt is a widely followed Elliott Wave technical analyst and author of ElliottWaveTrader.net (www.elliottwavetrader.net), a live Trading Room featuring his intraday market analysis (including emini S&P 500, metals, oil, USD & VXX), interactive member-analyst forum, and detailed library of Elliott Wave education.