[S+P500] update

The most recent S+P model presented here is reproduced below.



Current snapshot is below.  While we could be done with the flat correction it would count best if we got one more little bullish move up to 2020.  This is where C would = A and that is generally how flats terminate.  Equal to or slightly higher.

Note that commodities seem to be trading in step with the DJIA at this point so a big swoon in the main indices could affect everyone but if it happens then it will likely be the final wave down in Avi's M+M count.  I suspect one more scary sell off in the DJIA and S+P to finish off a large degree wave 1 down will be enough for Yellen to cry uncle and say something like interest rates are on hold indefinitely until market stability is achieved or some other weasel words that indicate the fed will support the markets indefinitely (as if that is even possible).  That should initially cause both the DJIA and M+M to reverse upwards.  For the DJIA that should be 2 up prepping for 3 down whereas for M+M it should be 1 up off the bottom and when DJIA goes into 3 down M+M do not create a lower low; they only go to an inclining double bottom and that is when people see that they are decoupling.  The scenario is much more likely if interest rates spike on the fed's statements, thus indicating that the bond market is done listening to the bat faced fed chair.

Before this is over, Yellen will certainly lose control of the bond market.  In fact, the fed never had control per se, it was just treated as the respected leader by the herd.  But before this is over, the office of the federal reserve will be the laughing stock.  "Don't fight the fed" will turn into "Don't fear the fed" or more to the point "Yellen down because we are Fed up".  Nobody is saying this now.  This is considered ludicrous in most learned circles.  Still, I like my odds and I'm planning on putting my money where my mouth is.