Mini SP500 New World Record High!

Any bearish wave count I had, didn’t last very long. From the November bottom and  then followed by a 4th wave crash, created an overlapping pattern that technically would not be an impulse. In this case I will use it for a short period of time and see if a few more wild moves, turns this last run to new highs, into a diagonal wave.  The Nasdaq broke the diagonal pattern and produced a nice impulse so far. 

Old record highs have been left in the dust on most of the key indices that I follow, but we have to keep an open mind that we could be topping at another wave 3 peak. At these intraday levels, the markets are moving violently in both directions. To keep the bears piss off, this market could wobble around like this for a long, or even last out the entire year!  

After every record high, the markets will at least produce another correction, but we have to wait and see how deep any correction will go. 

Markets love even numbers so the 2600 price level would fit the bill perfectly.  What is not so obvious is that 2584 is an even Fibonacci number and if we count backwards, a 61% decline from 2584 will get us the next even Fibonacci  number of 1597. (1600) Even that number barely comes close to the previous 4th wave of one lesser degree, so a Cycle degree correction would have to fall much deeper. Any 987 (1000) price level would certainly fulfil part of the Cycle degree retracement requirement, as it would also retrace to 2011 market lows.  

The VIX has also crashed, and is getting very close to closing off the lowest price gap. The VIX doesn’t have to close this gap, it just would be nice to see it closed off before the VIX cranks up again.