E-Mini S&P Midcap Intraday Review

EWY00-May-13-2016

I also made some changes to the S&P Midcap index, as it has one of the best fitting impulse waves that I have run across.  It looks like it has turned the corner  in late April as well, so now we have to be patient to see if the trend continues.  The short story would be a 5 wave decline in Intermediate degree finishing a potential Primary degree “B” wave top. 

The only way this will work is if the rally since the 2009 bottom was in fact a bearish rally, which would make it an expanded pattern. Expanded patterns are extremely bullish after the 5th wave decline has been fully exhausted. This must be lower than the 2009 bottom, even if it is only by a few points. So if this is all real, and I’m not chasing another mythical dragon, then this S&P Midcap could end up closer to the 400 price level, when it is all done. 

Of course, anything can still go wrong and hopefully we will be alert enough to catch any big mistakes.