Should I trust and Invest into the Current Rally?

Big Question in the mind of trader of the financial markets is, “Should I trust and Invest into the Current Rally”?

Markets have finally surpassed the resistance of 06/21, but it is now, also entering into a danger zone, which would have been averted, if the decline had continued, and selling momentum would have evaporated eventually within next few days.

However, after the rally, the selling will come with renewed energy, and severity. It shall be ruthless, this time. Current rally would cause to develop a “Major Pattern of Head and Shoulder” and thus result in bigger decline eventually to follow after this rally has ended. Therefore, current rally is a “B” leg of the “ABC /“. The consequential decline, wave “C”, shall start, after the completion of the “B” wave, which shall be very soon. According to my time cycle analysis, I foresee July 1st to July 5th window to be aligning up with price cycles.

Please see the attached chart of NASDAQ Composite Index, It is heading into the major resistance of 2,760, 2780, which is at 61.8% level of the recent wave “A” down from May 2nd high to the June 16th low. Final wall of resistance rests at 2,800 and 2,820 areas, which are 70.70% and 78.60 retracement from the 05/02 high. Once market enters into the 2,780 area, it would have completed the required height of the left shoulder. The neckline rests at 2,600 area. Upon the successful completion of the left shoulder and subsequent decline, could target the 2,462 and then further lower target of 2,340.

Now let’s look at the Standard & Poor 500 Index, SPX. My targets for the current rally are 1,315, 1,322 and final ceiling at 1,328 area. These resistances mark the 50% and 61.8% retracement from the May 2nd high. I think that 1,315 (+/-) could be a strong resistance, rather a reversal pivot, as it squares the price of SPX, from both pivots of  05/02 high and 06/16 low. 
Upon successful completion of the head and shoulder pattern, my support targets are 1,220, and 1,205. When the further decline ensues, the next support targets are at 1,190, 1,176, 1,150 area.

THE MOST ACCURATE FORECASTING OF FINANCIAL MARKETS

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