So far the markets have refused to die, as they keep on ticking and heading higher. Many are convinced the correction is over and higher highs are coming. Dynamic bullish moves like this happen in bear market rallies frequently and most of the time they never last that long as well. From a Cycle degree perspective, every bear market rally gets retraced which in the Nasdaq started from the 5900 price level. Any move below this 5900 price level would confirm that our present rally was just another fake.
If investors are getting fooled with just a Minor degree bullish move then there is little hope in convincing anyone that there are Primary degree bear market rallies.
The SP500, DJIA and the Midcaps all seem to match this Nasdaq rally on the intraday scale, which I think is a bear market rally. The Nasdaq has dipped into the previous wave 2 which automatically makes it a diagonal pattern. The Nasdaq has already backed off but another short spike may still turn up.
The COT reports are unreliable until after the government goes back to work. This is when the gold ratio database is helpful how expensive or cheap the markets are when we always calculate using the futures gold cash price. My new record for the Gold/Nasdaq ratio was 6.38:1, and today it is at 5.1:1. This is a bit cheaper but still on the extreme expensive side. Cheap was 1.18:1, so I would like to see a 3:1 or even a 2:1 ratio.