Week 24 Market Roundup — Correction is finally here

Last week S&P 500 hit the target near 3210, which is an axis line and the price stalled there for 3 days. The small distribution range was only clear on 10 Jun after some selling happened to react the FED commentary. Next day, S&P 500 broke down from the distribution range and the sell off began.

As there was not much causes built for the distribution, the projected target (2938–3042) was considered reached within a day. The sell off on 11 Jun was definitely a Change of Character bar and is part of the change of character of the up trend since the bottom in March 2020. So, I anticipate at least a pause of the up trend from here on.

I also mentioned potential scenario to happen from here on in my daily market analysis video posted on Friday. Feel free to check it out if you haven’t done so.

A test of the selling climax on Friday with a lower low was a sign of weakness (SOW) suggests possible down-sloping range to be developed, which could further test the maximum point & figure target at 2938.

As I mentioned in Week 23 market round up, this rally is to be monitored closely to see whether it will end in a climatic way or an exhaustion of the momentum as the late comer funds joined the bull run from 13–29 May together with the bullish sentiment as shown in the CNN fear & Greed index and the AAII Bearish & Bullish % Investors indicators, which we should be more alert while the public are getting bullish and excited.