SP500 E-Mini Weekly Chart Review

I moved my wave 3 extension back down so now it’s the 5th wave I’m extending.  Since the 2007 peak, the markets are in the process of finishing wave 3 positions each declining by one degree. 2007 was a Primary degree, 2015 is an Intermediate degree, 2018 being a wave 3 peak in Minor degree.

As I run out of degrees then Cycle degree wave 3 should be next to complete. The peaks will become one degree larger degree wise. SC degree wave 3 will peak in our future peak and not in our present, yet the majority of wave analysts are still trying to force GSC degree wave 3 onto the 2000 peak!  Sorry folks, markets do not have multigenerational 5th wave extensions as they are technical the weakest.

This markets can jerk around frustrating us to no end, but another correction is due that can send investors running to the hills once again.


Hits: 17

Brent Crude Daily Chart Review

Brent crude crashed late last year and until it soars far past the October 2018 high, Brent crude is still in a bear market. Any rally can get all the investors excited again, but I turn bearish when markets become saturated with bullish news!

I’m sure investors are swamped with fundamental news but history shows that markets do the exact opposite. Remember “Peak Oil”?  Oil was forecast to go to $200-$300 after which oil crashed to $34.  The experts were spewing fundamental bullish rhetoric, yet they were caught in a bull trap as the oil price imploded.

Now a storm is causing disruptions but that is nothing new as it happens every year. When something like oil refuses to go higher under bullish news, then any bullish run can crash into a brick wall and reverse.

I have painted a wedge and it looks like Brent may hit the top trend line but it can also do the opposite and hit the bottom trend line first!  Oil can crash much faster than it can go up as there are “No” daily trading limits in commodities. Fear can drive markets much faster than what “Greed” will ever do.

Hits: 12