Just a quick look this morning as the market looks to be completing a short term top. I will discuss how we got there in a later post. A quick look at a point and figure chart for the S & P 500.
From the 1640 level there are 8 boxes in the count and since it is a 3 point reversal chart you multiply times 3 and that gives us 24. You then multiply by 10, the value of each box, and the resulting count is 240.
Taking a look again at the S & P 500 and you count from the 1650 level – Price Objective 1415….
That would be a correction of 12% from these levels and it would keep the bull market alive since we would still be in the long term channel, assuming that the channel’s integrity is not challenged.