The S&P 500 is Setting up for a Slingshot Move

by Simon Maierhofer
Market Watch

The verb “slingshot” is defined as “forcefully accelerated.” Most investors hate to be caught on the wrong side of a “forcefully accelerated” stock market move.

Ironically (and vindictively), most forcefully accelerated market moves are forceful only because the majority of investors have been wrong-footed, kindly providing the cannon fodder needed for the next move. The slingshot moves shakes out the weak hands, punishes the crowded trade, and tends to reward the brave minority.

The Aug. 7 Profit Radar Report visually projected (yellow line) the anticipated slingshot move via the chart below (why we expect more up side is discussed in the 2016 S&P 500 Forecast).

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