E-Mini S&P MidCap Stock Mania Review

 

ewy00-dec-1-2016

 

This chart is in linear form which makes the bull market look more impressive. Since the 2009 bottom we had a rocking bull market that most wave analysts missed. This has turned into a 400% gain, which nobody was prepared for.  The real rotation into stocks got going in 2011 and we know this because gold stocks started to implode, and the US dollar was also ready to fly. 

It makes no sense to me to believe that we are starting some great move into stocks, from an already very bullish top. We also have a very vertical move breaking to new all time record highs.  A major top may have already been in a few days ago. So how long will it take, before market observers change their minds and become bearish again?  

The entire bull market has been a diagonal 5 waves, which includes many overlapping wave structures that will not fit into impulse waves.  

To help confirm that the Cycle degree wave III has a good home, we know that the markets have to drop fairly deep, well below any 2015 lows. At this time a flat or even a zigzag can happen, but any triangle is pretty low on my list.  Any bear market has to finish at about the same time as solar cycle #25 starts. You never want to bet against the power of the sun by being bearish at that time as it could turn into a 5 or 8 year bull market once Cycle degree wave IV has completed. 

We had a run of 5 diagonals waves in Intermediate degree, so there is no hope of ever getting 5 waves down in Primary degree as we would go to zero if that was the case.   They tried that magic act back in 2009 already, but I’m sure they will try and repeat the same mistakes again. 

 

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