Stock Decline Looks Imminent

Many of the indicators are lining up for stocks to make at least a multi-week top sometime between now and mid-January. If so, I will label the move up from the December/2018 low as an X wave as I mentioned a couple of times before. 

There is a smaller chance that stocks are now in a wave 3 from the October/2019 low which would also be ending at any time although the decline would be not as severe with a test of the December low more likely. The wave 3 count could also be more likely then the wave X count to bring a high more toward the end of the timeframe from now to mid-January.   

Even if the wave X count is correct, I don't think there will be a huge price decline from here and would not be surprised to see higher highs later in 2020. The worst case may be a retest of the June/2019 low.

S&P500 Daily Chart (click to enlarge)