This should be one of the last minor tops before the arrival of a much more serious correction, most likely the most serious one since the 1810 low in the SPX. From a time standpoint: a little more time is required. Price-wise: a few more points as well. More specific information regarding the date and the top projection has already been made available to subscribers (including trial subscribers).

In the last letter, I pointed out that we just had the largest correction since August, but needed to confirm that it was over. That confirmation came when we went up on Monday instead of re-testing the 2567 low one more time, and Thanksgiving week brought about a new all-time high for the SPX. It is anticipated that there is more to go, but not immediately. If Friday was not the top of the move from 2557, Monday should be. There is a minor cycle bottoming over the next week which will give us a few days of consolidation/correction before we resume the intermediate move which started nearly two years ago, at 1810. More important cycles bottoming in January/February will place a limitation on how far the next upward push can extend over the near-term.  

Chart Analysis  (These charts and subsequent ones courtesy of QCharts)

SPX daily chart:

The next minor cycle is due in 3-4 days, and Friday’s action was rather tepid, but since it was only a shortened session, we’ll give the index the benefit of the doubt and allow for another potential few points on the upside before the cyclic rhythm starts to pull prices down. Whether we start retracing right away or a little later in the day, Monday looks like a good day for a cycle peak – unless it was Friday.  

Since a .382 retracement of the move from 2557 would bring the index back to about 2585, and that level corresponds to good support, that would be a good point for the minor correction to end —  this is assuming that we start retracing right away.  At 2585, the index would also benefit from support at the green trend line.