SPX Scenario - Father's Day Present

What gift does a dad really want? He wants to know where SPX is going next. It's all about being right and trading with the market.

So what does the current picture remind us of? I have shown this before, and will continue to do this until it stops working. SPX is trading last year's scenario (left part of the chart below). Vertical white line shows where we currently are compared to it. A wedge has formed at the lower trendline of the uptrend channel. There will probably be a breakdown with successful retest of the low at 1598. After that a strong bounce into the upper BB on daily chart may occur. If this scenario is continued, then the high at 1687 will most likely not be breached, and a protracted sell-off will ensue after resistance at BB holds. I would be looking for a 10% correction at that time (starting in July).

Happy Father's Day!

click on chart to enlarge