Alternative Path

[gdl]

Using Fibonacci ratios we come to an interesting conclusion. The 61.8% rally off of the lows comes to around 4340 on SPX. 50% retrace is 4196 the place that it is right now. the momentum proprietary system has a top at 4382 and a possible bottom at 3424.

IF we actually have a resolution to the debt ceiling, odds that are slim in my estimation, we can easily hit the range between 4340 and 4382.
if we do not the immediate response should come in between 3600 and 3424.

The street is exceedingly bullish with very small concerns right now as it stays near its recent highs. Like the fed rate hikes they will only get worried if they stop seeing a rate cut this year. Same with default. If they actually wake up to the realization we default the market will be quick to react.

That's why I see an immediate move one way or the other depending on outcome of debt deadline. Even the deadline is in dispute but most likely early in JUNE!