Between the 5 indices, I generally watch, each one has a slightly different pattern and in the case of the SP500, I have one small zigzag that doesn’t fit as well as I would like.
At the 2895 price level, we have several previous 4th wave peaks which also have some spikes in them. Draw a line across the 2895 price level and we also have an H&S pattern which could also be very bearish. In a bull market that right shoulder would never hold but when investors are in a bearish mood, that right shoulder will just keep on crashing.
It’s a full moon today so next week could end up being a wild ride indeed. What else is new? I would rather see some fast action than when the markets are in a sideways pattern.
Either way longer term I’m bearish, but nothing can stop a wild counter rally when we least expect them. A Minor degree wave 1-2 can work but a surprise rally produced by a stock bull attack sure can create a ruckus.
The commercials are not that bearish so this leaves it wide open for moves in both directions.
The Gold/SP500 ratio is at 2.26:1 and it’s been hitting this 2:1 ratio brick wall since May 2018. Longer term we may end up close to a 1:1 ratio but it will take a long time to get there.