It all depends. If the S&P 500 were to somehow push above its former highs, then it would still have an a-b-c downward move ahead of it.
Typically, the right side of a double top is the end of a wave 5. Either way, we’ve got either one massive wave C ahead of the market or an entire a-b-c downward move ahead of the stock market.
But what do we know FOR SURE. P/E’s are at crash levels and earnings overall are slumping. The market relative to GDP is the highest I can ever find since its been tracked…higher than the crash of 2008 and higher than the crash of 2000.
We know that that tech stocks are in a bubble like in 2000 and will pop like the NASDAQ did. And we know that the overall stock market is in a bubble and massively away/above its 200-week moving averages. We also know the sentiment is uber-positive and the average Joe only thinks stocks can go up. Many people investing today haven’t been through their first bear market, therefore, they’re not expecting one.
So, ultimately, I’m expecting another massive down-move. However, what it does ultra short-term is anyone’s guess. I have my suspicions of what will happen, which I posted yesterday in the “my thoughts on the market” thread.