Is SPX Just Starting Its Run To 3000?

By Alexandros Yfantis of Trading2Day

Alexandros Yfantis • May 30, 2018 at 8:54 AM EDT

The SPX index more than 150 points higher from the 2018 lows, after breaking out of a consolidating triangle, sentiment (thanks to Italy) it looks very bearish on equities.

With the index more than 150 points higher from the 2018 lows, after breaking out of a consolidating triangle, sentiment (thanks to Italy) it is very bearish on equities (at least from my point of view). I have previously mentioned this triangle scenario and that the entire consolidation could be a huge wave 4. I believe that it is more probable to say that this triangle is complete and that we already have started to make an impulsive wave higher.

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I believe we are currently in wave 2 and there are many chances it is also complete. The price tested the broken triangle. If SPX moves below 2685 then wave 2 is not over.

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A break above 2740 will confirm wave 2 is over and we are starting wave 3 higher of the first impulsive wave. According to this wave count, I see SPX hitting new all-time highs this summer.

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The 2610 level remains key for this scenario to come true. Even with a more complex correction, I can only see SPX fall to 2630-2650 max. Bulls do not want to see 2610 support being broken. If this happens, then the 23.6% Fibonacci retracement in the monthly chart, as shown above, will be our first target. Until then I remain bullish.

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