As we know there is clear divergences going on between the four indices namely Dow Jones, S&P, NASDAQ and Russell 2000.
Dow Jones and S&P are moving up like snails whereas Nasdaq and Russell 2000 are moving down.
On Friday Russell 2000 closed near the level of April 15th low which was 1096. It seems to me that this low of 1096 will be broken soon. On Friday it closed at 1107. So the drop of 45-50 points is expected soon.
NASDAQ 100 April 15th low was at 3414 and on Friday May 9th it closed at 3555. The low of 3414 should not be broken otherwise new wave of selling will come in the market.
S&P made a high of 1897.28 on April 4th and so far the assumption is that it is the top for now and the sideways move in S&P since April 22nd will resolve to downside. The low of 1814.36 which was made on April 11th should not be broken in case S&P comes down from the current sideways range.
Starting May 12th market is expected to trade with upward bias but then starting Wednesday May 14th is expected to come down once again and continue its down till May 19th-20th.
It is also expected that any rally in the market should be a temporary rally and eventually Russell 2000 will come down to 1000 and NASDAQ 100 to 3100 level. S&P is expected to come down to 1750 level. These targets are expected to be met somewhere by mid to third week of July.
Therefore, market from now till July 19th-20th could put on several temporary tops and bottoms and eventually come down to the targets mentioned above.