$SPY The 2000+ level and the all time high record news are already a thing of the past. We have reached the peak and now the market is in correction mode, Are we already in a Bear Market? Not yet, but we're heading to one.
In the Monthly Big Picture, the US Market has been in an uptrend with two major previous peaks, the eBubble and the Housing Bubble, currently we're in the process of exiting the Free Money Bubble. Nobody liked when the Fed announced the Free Money was over, but it was something unavoidable. The Fed is trying to let this bubble deflate as smoothly as possible, trying to avoid a market overreaction, so no more rate hikes are expected soon.
1800 is the Key Support Level. So the market is expected to be bouncing around 2000 and 1800. But in case the market overreacts or a major triggering event happens, this support level could be broken and the next target to the downside is 1500, which are the peak levels before the recession and technically is the 0.618 Fibonacci level (a strong support) and the mid uptrend channel support line.
In the Monthly Big Picture, the US Market has been in an uptrend with two major previous peaks, the eBubble and the Housing Bubble, currently we're in the process of exiting the Free Money Bubble. Nobody liked when the Fed announced the Free Money was over, but it was something unavoidable. The Fed is trying to let this bubble deflate as smoothly as possible, trying to avoid a market overreaction, so no more rate hikes are expected soon.
1800 is the Key Support Level. So the market is expected to be bouncing around 2000 and 1800. But in case the market overreacts or a major triggering event happens, this support level could be broken and the next target to the downside is 1500, which are the peak levels before the recession and technically is the 0.618 Fibonacci level (a strong support) and the mid uptrend channel support line.
