Turning Point

There is currently a preponderance of technical analysis evidence as well as fundamental economic evidence suggesting Intermediate Wave 2’s countertrend rally high is at hand.

That means Intermediate Wave 3 down should begin soon, taking prices sharply lower.

It will be stronger than Intermediate Wave 1 down from early January 2022 to October 2022.

Anecdotally, it is hard to find a retail investor that has this prospect on their radar.

That in and of itself warrants caution.

Another factor indicating stocks are about to culminate or have concluded the rally from October 2022 are a cluster of SEVEN Fibonacci time relationships:

June 27^th is 2023 is a Fibonacci 21 trading days from the May 25^th, 2023 low.

June 20^th is a Fibonacci 34 trading days from the May 1^st, 2023 top.

June 22^nd is a Fibonacci 89 trading days from the February 13^th, 2023 top.

June 30^th is a Fibonacci 144 trading days from the November 30^th, 2022 top.

June 21^st is a Fibonacci 233 trading days from the July 14^th, 2022 low.

June 26^th is a Fibonacci 610 trading days from the January 20^th, 2021 top.

June 16^th is a Fibonacci  987 trading days from the July 16^th, 2019 top.

Clusters of Fibonacci turn dates have been impressive in the past.

This series ties to the July 4^th turning point week we’ve highlighted throughout June.

Going into this time period, the SPX gapped up to close at a new high for the move off the October 2022 low.

We either have an exhaustion gap at a double top or a Breakaway Gap.

A reversal below the June 16^th high sets up a Soup Nazi sell signal.

If that plays out, downside follow-through will be key.

We haven’t taken a look at the DJIA or a big picture IWM  in some time.

It shows a Tombstone Top.

IWM shows this year's double top in the 196 region.

The SPX hit the top of its long term channel in mid-June.