The Correction is Over (10/05/2015)

Given the sharp rally that we have seen over the past few days in all of the major indices, I have come to conclude that the correction is over.

spx successfull retest oct 2015

Notice that the S&P 500 had a very close retest of its August low and then engaged in a very sharp rally. Given that we had what looked like a complete, 3-wave corrective pattern from Aug. 24 to Sept. 17, followed by a classic breakdown, it would be very atypical to have a sharp, sustained rally like we have just seen if this is just a counter-trend rally.

Thus, I consider this rally to be the start of a new uptrend. When I have more time, I will make a detailed post on my outlook for the market over the next two years.


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