Each index that I cover has differences in the wave patterns which does make it much more difficult to find a good wave count. This DJIA chart top has rolled over a bit before it went south with “Gusto”.
One little dip is not going to cut it when a Cycle degree top is involved. Besides that solar cycle, 24 is still alive and well until solar cycle 25 starts to make a strong showing. A few sunspots belonging to solar cycle 25 have already been recorded but we need a good 50/50 mix before solar cycle 24 is completely dead!
Sunspot activity was dead last month and it could still last all of 2020 or early 2021. Once this solar cycle 25 starts to crank-up then there is no chance that I can stay bearish. The sun is the “Bull Killer” and the “Bear Killer, as the 2000 peak and 2009 bottom clearly demonstrated.
All hell can break loose a year or so from a solar cycle bottom like 2008 and now we are heading into the same situation except its one degree larger of a decline.
The younger investors can take advantage of “Sun Power 25” but you have to watch it and build up trust with our sun and its cycles.
The markets took a “Big” dip since last week and many experts are talking about buying the “Dip”! Sure it looks like an impressive dip but I believe the bears still want to shred some more stock bulls. So far, we are in a counter-rally which may be a wave 2 in Minor degree.
Buying the “Dip” for what? Another bull market or are we just in another bear market counter rally? I don’t think this market will let the stock bulls off so easily as this was just a wake-up call for what’s to come.
There is no real support just yet as the SP500 should fall below the June 2019 low. 2750 could supply support but the big support range is 2350!
We are at a Cycle degree top and Cycle degree corrections are not over in just a few days of crashing prices. Besides that, solar cycle 24 is here, which could still last a year or so. My bet is that this top is the last record high for the year so this might go on until we hit the lowest point of the year.
If stocks have yet another major move up then, to put it bluntly, Gold and gold stocks would crash.
The Gold/SP500 ratio is 1.94 which still has a long way to go before this market is really cheap when using the gold cash price.