Global Equity Technicals - One final leg

Our preferred wave count for the S&P500 shows that the index has peaked at 1,039 after the breakdown of its ST uptrend channel support at 1,014 last week. We also retain our downside target of 950, which is the major uptrend channel support. This week, we introduce an alternate wave count, which has a minimum target of 1,045-1,071, similar to our previous upside target. The alternate view would come into play should the 1,039 level be taken out for the S&P500. Asian markets are on course for a final upswing after holding steady above the key support trend line for MAxJ last week. However, the Shanghai Composite Index may have peaked for the medium term after a 5-wave decline from the high. The Shanghai index is currently on its wave-2 rebound to between 3,059 and 3,158.

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