The market bottomed in December of 2018 and has now been in a bull run that is a bit more than 3 months old. 2940 represents the potential for a huge double top, and a major Head&Shoulder pattern as well.
We have about 60 points to go before the SP500 runs into new record highs. This remains to be seen, in the days or weeks ahead of us. The entire 2019 market rally is very straight with no real corrections in it.
The corrections we did get are diagonal waves and could be an ending to a “C” wave. Now is also a good time to calculate a Gold/SP500 ratio which means little, if we have no database to work with. Not too many take the time to make a few calculations per month, or when faced another potential extreme.
Since September 2018 any 2:41:1 ratio would be expensive when using the gold cash price, this morning the Gold/SP500 ratio was 2.24:1. This is not a record but very close to being very expensive. A cheap Gold/SP500 ratio would be closer to .75:1
Just with those numbers alone, It’s hard to justify looking for another superbull stock market to materialize.
The Golden Cross happen at the 2760 price level which is very bullish, but always lagging in time. This doesn’t mean that the golded cross will last as the markets can reverse just as easily.
The first Friday of every month jobs report and a full moon could produce another turning so anything can still happen in the short term.