If the S+P 500 has peaked cyclically then here is what might unfold (part 2)

Following on immediately from the previous (part 1) update looking at the prospect of the S+P 500 peaking cyclically, we should look at the next corrective wave beyond 5,825 (50%). That is the 61.8% correction level and it is in place at 5,901. It would be reasonable to assume that at any stage, if the index rises above 5,995 from here on, then the prospect of this current 10% correction being the end of the move lower could come back into play. Much lower down major support and a potential target for a deeper correction would be at 5,132. Beyond that lies bear market territory (a fall of 20% from the peak at 6,147) and that is at 4,917. That is a prospect that is still potentially on the table in due course. Of course it might not be reached on this cycle, but if it is, then another level comes into view and that is the peak at 4,808 set on December 31, 2021. If at any stage that ever gets taken out then it could be curtains. So, its very much all in the balance in respect of the longer term, but in a few minutes the index is going to reopen and it is going to be a higher opening this afternoon, right priced just above 5,780