E-Mini S&P MidCap 400 Index Intraday Record High Update.

Since mid August 2017 this Midcap 400 index soared to new record highs once again.  So far the tops between all the other indices are fairly well synchronized. That also means then can crash together when the time is right.    A steep run like this is not normal as bull riders just want to pile on because it is going up. Most of these moves have little to do with fundamentals, but have more to do with chasing a bull market. Retail investors just love to buy high and ride the extremes, but as history has shown us, no trend ever lasts.

Single vertical moves always run out of steam and the very least we should get another strong correction. We have many open gaps below so all these gaps make for a great target price. I would love to see 100% retracement of the entire 5th wave rally, but that would act just like a bee sting. We need a big correction that will cause the majority of analysts to wonder what is happening.

How deep can a Cycle degree 4th wave go? I will be surprised if the Midcaps don’t fall lower than 800. This would take the next 2-3 years to play out and the markets have to give us a clear sign that they are ready to do so.

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