On March 12, with the S&P 500 having closed the week at 4204.31, Avi Gilburt wrote in his Weekend Report that "when sentiment turns towards this negative of an extreme, it almost always precedes an impending major rally."
His 60-min SPX chart showed a "minimum numbers of waves in place to consider wave  as completed," while his 5-min SPX chart pointed to a rally in wave iii (of the first wave of wave ) with a target of 4650.
The index indeed went on to rally, reaching 4,463.12 by the end of that week and topping at 4637.30, just beneath his target, on March 29.
At that point, Avi cautioned EWT members about downside risk in a special Market Update, titled "Recognition of Risk,” just before the open on March 31, writing:
"My ideal target for this segment of the rally has been 4650SPX. We have come within spitting distance of that. Can we still extend as high as 4690SPX in this move up? Yes. But, one has to recognize where the risk/reward resides in the market….
"You see, my expectation now turns towards greater downside potential than upside potential. My general target for downside in the bullish scenario is the 4460SPX region, which is the 1.00 extension of waves i-ii, and the general target for a 4th wave pullback."
The S&P 500, which was at 4602 at the time, went on to drop to just below Avi's downside target, reaching 4450 on Wednesday and again on Thursday of this week before bouncing to close the week at 4488.28.
What is Avi calling for next? Please join us to find out.
Overheard this week:
"I made more money here in my first month than I made in 6 years on SA. How people there continue to argue with the market is beyond me.” --PapaC4p
"I asked the heavens to find this place for me and it responded accordingly." --Orpheus
"It has been amazing Avi - both on $ made and more importantly $ not lost/given back based on following the analysis. Thank you and the entire team." --Jon_M