S&P 500 Midcap Intraday Rally Update.

This Midcap chart has also tried blasting off to the moon, pushing the index further than I wanted to see. This is not the start of some impulse wave which would soar to new record highs, but it has far too many overlapping wave structures. The “C” wave bullish phase is very typical with the big difference being the degree  level that we are dealing with.

This rally is getting into the previous high, but can go above the 4th wave if need be. To confirm that this rally is just a bearish rally,  the Midcaps have to crush that 1685 price level, by a wide margin. Another zigzag would work just fine, helping to keep this index as a leading indicator. The VIX is headed to $10.50 reflecting the sudden mood of complacency. When investors become complacent again, you know the markets are getting ready to deal a blow to the  bulls egos again. 

Once a decline becomes more obvious to the majority, then we could see the pace of any decline pick up and waves starting to smooth out again. 

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