S&P500 reaches a new ATH. However ISM/PMI Data out of the US speak a different language. After we have already witnessed a global slowing and contracting of the economy with many countries having PMIs under the 50 level for quite some time now, the US has now followed this trend that has been going on for over a year. PMIs again came in lower today and under the important 50 mark, which means in the contracting area. We have now 3 readings in the PMIs under 50 over the last 3 months, signaling that the situation is not just a statistical outsider but a trend. I am expecting the US market (S&P500) despite worsening data still to reach potentially the 3200 level. However these gains are driven mainly be the expectations that the FED can turn things around like always. Should we reach the 3200 level and economic data has not been improving until then, I am expecting a bigger 3 Wave correction to start from there, potentially even a correction that could be correcting the bull market which has startet in the year of 2009, this could happen if despite FED interventions the Economic Data doesn't improve. Hence expect a correction from the 3200 level, the size of the correction then will be unfold on weather the FEDs interventions are successful or not. Either way I am expecting that it will get very interesting soon keep the markets under close observation. Good luck!
