The stock markets have started a bearish move with the DJIA having a bit different of a top than the SP500. It’s been a long-anticipated move which will produce many twists and turns before we find that mythical support price.
Support for what? A temporary stop for just a correction or something that is going to breed the next big bull market. This all depends on what degree the record high actually was.
I’m looking for a Cycle degree correction which the majority of analysts will end up calling a conventional bear market.
I will keep my options open as to what type of correction we will get. We could eliminate any potential triangle as there is not enough time before solar cycle 25 starts to crank-up.
A “Flat or Zigzag” is my pick but the present decline can just carry on without any obvious Primary degree counter-rally. “A” waves can crash very deep and then produce insane rallies as well.
Gold is still soaring but I think the gold move is mostly emotional with the US dollar breaking a new record high just before it took a nosedive.
Stocks and gold compete with each other so when the DJIA is ready to make a huge bullish move then gold and gold stocks should implode.
Stocks could see a bearish mood for the rest of the summer and well into the fall, but that remains to be seen. Sometimes the choppy decline can smooth-out a bit but only time can confirm that.