Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Did the S&P 500 Just Peak at 1,356?


Evidence is mounting for a good-sized correction.

This is somewhat of a things-that-make-you-go-hmm exercise, but lets examine this 1356 number for a second here.

The S&P 500 hit 1356 today and put on the brakes and reversed down to 1341 in a possible terminal top move.

1356 actually has Fibonacci relationships. If we take the last major rally which was from the Summer 2010 lows:

1010-1370 (May 2011 highs)

360 points

.786 of 360 is 283 points

Take 283, add it to the 1074 October lows…. you got 1356/57.

That would mean this last rally so far is .786 of the 2010-11 rally.

Also, 1356/57 is right in my 1352-1376 pivot ranges for a Major 3 top as well.

My point here is that evidence is mounting for a good-sized correction.

Possible count, though many will argue is not valid:

Wave 1- 666 to 1221- 555 points

Wave 2- 1221-1010- 211 points, .38% of 1

Wave 3- 1010-1370 360 points, .61% of 1

Wave 4- 1370-1074- 296 points… 38% of 1-3 (A bit more than 38%)

Wave 5- 1074-1356 .786 of 3

Only rule violation here is Wave 4 would have delved into wave 1, which is a no-no for most E wavers. However, I would argue that 4 often does delve into the wave 1 arena and legitimately, but that is a topic for another article.

Nonetheless… pay attention to the Fibonacci relationships. If anything, they may be warning of 1356 as an interim high and top with correction starting. This would either be a fourth wave down with the fifth and final wave up left, or we topped at 1356. A drop below 1337 will confirm a correction at minimum to 1310 and then 1295 ranges.

Just food for thought…we have been lightening our positions and raising stops at my trading service.

Editor's Note: David Banister is the chief investment strategist and co-founder of, a small-cap portfolio and market advisory service.

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos