8/13/2018 – A negative day with the Dow Jones down 125 points (-0.50%) and the Nasdaq down 19 points (-0.25%)
Short-term, the stock market continues to follow our exact trajectory. The next larger scale move should be….. If you would like to find out what the stock market will do next, in both price and time, based on our timing and mathematical work, please Click Here
Here is a sure bet ladies and gentlemen, if I have ever seen one……
Two possibilities for the S&P 500’s melt-up phase
Due to the higher move early last week, I have to now consider the more bullish pattern to 3,225 more seriously. I have labeled that pattern in blue, and it is an alternative pattern at this time. This pattern has a leading diagonal for wave (i) completed off the early April lows, and has us now setting up for the heart of a 3rd wave, ultimately pointing us over 3,100 on the SPX for wave (iii). However, in order to prove this is the operative count for wave (5), we will need to see a strong break out through 2,890 in the coming week or two. Should this occur, then we will likely see a pullback to the 2,870 level, and as long as we hold the 2,840 region on that pullback, it will be pointing us up toward 3,100 in quick fashion to complete wave (iii) of wave (5).
There you go, just load up on call options and ride this train to the promise land of milk and honey of massive capital gains.
RIGHT?
Wrong. Over the last few weeks we have been discussing an important divergence between the Nasdaq/Russell/Wilshire and the Dow/S&P/NYA. It is important to note that while the former is sitting at or near its respective all time highs, the latter is nowhere close.
How do we reconcile that?
Once again, that was the exact topic of discussion in our weekly update. In order to answer that question properly Timing, Cyclical and Mathematical analysis has to be thrown into the mix. Only then can one answer an all important question of what the stock market will do next.
If you would like to find out how this divergence will resolve itself, in both price and time, please Click Here. One thing is certain, it won’t be as simple as a one directional “melt-up”
