We have some very ugly waves that have formed, from the June 19th top. A 4th wave can still be in progress, but it also could be the start of a diagonal decline. There may be one more Micro degree 5th wave this week, and it could stop with another small double top. When we draw a trend line from this June top, then the 2436 price level could supply the SP500 with resistance. The maximum of this diagonal 4th wave would be around the 2444 price level. This tight range does not give us any room to wiggle around, but it also supplies the pointer to a potential wave 1-2, which is extremely important.
One thing about diagonal 4th waves, is that they “must not”, exceed the wave 2 spike I’m showing. Many times they stop in the middle of wave 2, and then they reverse, and soar the opposite way. Oil has been going up and down in sympathy with the SP500, but oil has also moved ignoring, the SP500. As I post the SP500 and oil are still soaring together.
Short term I would like to see the SP500 move higher, but after that it will be a crap shoot, if the markets soar to new record highs or not.
Many mainstream media news shows that the majority are also conflicted in the future trend of the markets. It can all smooth out some when another “C” wave follows any potential B3 wave as that would be very common. Diagonals do not look that much different than what a correction will do, so transforming to a choppy decline can make us think that just another bull market correction is in progress.