Mini SP500 Intraday Bullish Phase Review

Those investors that have no clue that bearish rallies can soar for years and travel much further than even a 61% move will make, will always get fooled when jumping on every rally with the fear of missing out.

The markets are still in nosebleed territory, as they are having difficulty in deciphering this “trade war” that we keep hearing about. The mass media just loves the idea of a trade war, and you can tune into any financial blog and chances are good they will be talking about the impending trade war.  A bear market constantly needs lower highs to develop, which any 5 wave decline will produce.

Big “B” wave rallies will be harder to accept as even they could rally 80% or more.  Markets will always try and fool the majority, and when they go down, they blame it on manipulation. It seems that everyone has forgotten the 2007-2008 market crash, or they think  the markets should never go down. I feel very confident in saying, that in the future we will see many more bear markets yet.

Many investors think that markets should never go down, so when they do go down, they will blame the decline on something else. God help us if we have such stupid investors out there, that actually think that markets never go down. Buying high, betting on that it goes much higher will always get you into a bull trap sooner or later.  There are still too many stock bulls around that are foaming at the mouth, just waiting for this crazy melt-up that they feel will surely come.

This vertical melt-up has already happened, which started in early 2016 from the 1800 price level. At a bare minimum the SP500 bear market should completely retrace that 1800 target. This still amounts to a mere bee sting in a Cycle degree world.  We can have crashes without bear markets with the 1987 crash, being a prime example. That crash was over in a few short months, with no real bear market that followed.

Now the 1929-1932 decline had a crash followed by a 2 year bear market and that market crash was also triggered by a trade war.

If the markets are over on the bearish side, then lower lows will be the trend and the impending 1800 price level will never hold. Even the SP500 1000 price level will get crushed in the next few years,. Investors are going to find out the hard way how investing for the long term works with this impending bear market.

I show a “B” wave top and I’m using it to either confirm or trash a big Cycle degree zigzag. I’m very confident at this time that we are not going to get a Cycle degree triangle, as solar cycle #25 will kill that idea pretty quick. I’m sure that betting against the sun in 2020, will keep investors in a mega bear trap, as the markets start to soar for a 500% gain.

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