S&P Midcap Bull Market Review: Break On Through To The Other Side!

 

 

EWY00-July-15-2016

 

This S&P Micap stock has now reached another major high by the slimmest of margins. About a 10th of a point.

This is not decisive enough at this time as it would be nice for this market to still go higher. I believe there is still the 5th wave to go, as the this Midcap created a very good looking zigzag. A zigzag correction inside a zigzag is rare so this could be wave 1-2 just as well as it could be an “AB”.

One big pattern that we can see once we apply the invisible top line, is the huge H&S pattern. Will that be a bullish H&S, or will this market permanently tank from this H&S pattern? I’m betting that this H&S will eventually be a bullish indicator.   This market could still fool around until early 2017, after the new government minions take over control, but I hope not.  The diagonal 5th wave is still alive for this index as well. 

If the wave 3 in Cycle degree is still ahead of us, then we can already formulate some simple 4th wave corrections and have them ready to go. Of course we would have to come up with 4 different wave patterns as we have to add a few complex wave structures as well. I do not favor a Cycle degree triangle so that leaves at least three other choices.  Only the flat will allow a single 5 wave sequence down the “C” wave, as another zigzag can have two.  All of them would be no higher than Intermediate degree.

Of course, all the big degree wave counters, will count any 5 wave decline one degree higher than what I would need. Not reviewing the entire wave count, would just carry all the same problems into the future, as it has done since 2000. 

This Midcap had a major bottom around the 400 price level, so when it ever gets close to that again, you have to ask yourself, “Is it going to zero”? Are you going to buy at another bottom or are you going to be fearful and believe the super bears. I know what my contrarian contacts will do if faced with that situation again.