Mini SP500 Intraday Record High Review

From the bottom on the 15th of November, the Mini SP500 has started on another leg up which has now pushed the Mini SP500 to about 2603.  If this holds for the rest of the day I will be surprised, but every new record high the markets give us is followed by a correction.  We had a serious overlapping problem which killed the impulse idea, but it works as a diagonal at this time.  So far the DJIA has not followed through, and has a bit of catching up to do, while the Nasdaq seems to enjoy a pretty good  looking impulse. The VIX stopped at $9.40 so far, with a big GAP still left open.

All those smart investors that just love to buy high see no downside risk in the world today. Some crazy news story can send the crowd into a mini panic which we’ve seen many times before.  How long these gyrations can keep happening, is always uncertain, but the end of the month can always prove interesting. 

In the big scope of things this market will take a big hit, and if it goes fast or slow is irrelevant at this time. Just a little dip is not enough to do the trick, so at a minimum the markets need to retrace all  previous 4th waves of smaller degrees. When it stops closest to the previous 4th wave in Primary degree, then a real bottom may start to form. The big bears think that the DJIA will fall to 5000, which would give us the 1996 solar cycle base.  If markets retrace to the 1996 prices, then this would put the SP500 at 500-550. 

Markets are born to fool everyone so if the SP500 stopped between 700-800 it would not surprise me at all.  When this bearish scenario, even gets close, stocks will already be oversold, yet the only people buying would be the contrarian insiders. 

It takes two gold ounces to buy one unit of the SP500, which is on the extreme expensive side, which has not changed that much in the last week or so.