I’ve been bullish S&P 500 since 2600 and have been calling for a hot summer rally to 3000 once 2700 broke upwards. However the strengthening of the Dollar might do some damage here and unless things get fixed, our plan previously explained here might get scrapped.
The Dollar must weaken, Fed should change its policy and lower the number of expected rate hikes otherwise…….the entire rise could very well be wave B of wave 4. Strong Dollar is not healthy for risky assets….
Even NASDAQ shows some warning signs that could justify an important top soon and a reversal…..
Bearish divergence, if price breaks below 7150 we could see a fast decline towards 6800 and the lower channel boundary…Unless the Dollar turns lower as explained and expected in this article I posted a few days back, equity markets are in deep trouble….navigating in stormy weather and dangerous waters now.
If the Dollar weakens, we should expect a shallow pull back or a minor new lower low from recent levels and then the resumption of the up trend….something like that….
SPX
NASDAQ
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