Mini SP500 Intraday Crash And Rally Review: Will The Crash Continue?

The wild swings we have been getting are far from over. To stay on the bullish side this market has to perform and break to new highs, even if it breaks record highs by a very slim margin.  Yes, the counter rally we are getting can count as an inverted zigzag, but we can get fooled, because diagonal waves start out pretty much the exact same way. 

It is critically important to keep an eye on the June top as this is where the count starts from at this time.  The VIX also shot straight up as the market crashed, but the VIX has already crashed in a dramatic fashion. It will remain to be seen if the VIX works its way to another new record low. As sharp as the decline was, I have to keep  the bullish and the bearish wave counts active, at the same time, until at least another new record low is produced. 

The next few weeks will be important, but this market has to decide either way, if this market is a bear disguised as a bull, or a bull acting like a bear to lure us into complacency.  About 2 weeks ago the SP500 soared to new highs with a 3 wave pattern, which can’t be counted as a 5 wave impulse, but yet the majority of expert wave analysis ignore this little known fact. 

Presently we are stuck between a rock and a hard place, while this market decides what it wants to do.  Any Cycle degree wave 3 top does not have a fixed home, as we need to wait if yesterdays crash low, will hold. 

In general, I do not post on any US or Canadian holidays, but I do occasionally break those rules.