Mini DJIA Intraday Review: Is There More To Come?

In the last 2-3 days we have seen the markets decline and now has gone  sideways since yesterday. There is no way I can work this as a clean impulse so the diagonal wave counting must continue.  Right now the markets are in a bit of a rally so, and if this movie breaks out, and we are all ready over on the bearish side, then a new top must not happen. 

The longer this takes for the markets to return to making new record highs, the more discouraged investors will get, as they see no more gains.

Insider Selling Skyrockets in May

Regardless of what the wave count may be, insider selling soared last month, while retail investors were buying. Insider selling is a contrarian indicator, and it is warning that this bull market will die.  We are short of steaks to put on the barbecue this summer, so the stock bears have to slice and dice their way through the herd, until no more stocks bulls are left.  

As usual, we should always expect some wild rallies with spikes, until we can recognize that a bigger correction is starting to play out.  We need a lot more short term evidence, to make sure that the peak on the 19th of May will hold. 

I can no longer look at this market as a staunch bull, even though we may hit another record high. One day the daytrading herd will panic, and they will put their mouse over the sell button, and run to the hills. More and more protective sell orders will congregate below present prizes, but any lingering bull market mood will take some time to wear off or disappear.     

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