Getting tired of this so called “bull market” yet? This market has been keeping us confused as to what direction it really wants to go. Price is never going to tell us anything useful becuase if it did, every average Joe and Jane investor would have been buying everything in sight at the 2009 bottom.
Many think this is a bull market because its still going up in price. The sad fact remains is that there are always bear market rallies at every degree level. If the experts don’t know the diffrenece with a Minor degree counter rally, then they sure are not going to know when a Primary degree bear market rally is in progress.
The rally for the last 2 months has been frusturating to say the least, but what stands out is that this rally is going against the bigger trend. I just had to draw in the wedge which is another very useful indicator when used at the right time. A potential “C” wave bullish phase could be finishing off, so investors are going to find out the hard way about the effects of a bear market rally once it resumes its bigger trend.
There is always a chance one more dash to the upside will happen, but I think this market is running on fumes. The 2550 price level doesn’t have a chance of holding, as any wave 3 declince will just rip through that support range with ease. To confirm any Minor degree run be it up or down, this wave two peak needs 5 waves down in Minute degree to help us identify the location we think we are in.
Not until we get another push to the downside, investors will remain oblivious to the depth of this impending bear market. If we don’t suspect that a Cycle degree correction is coming then all support forecasts will be useless to say the least. We have to be open to the fact that any opening zigzag requires a 5-3-5 run so we have a long way to go. Another 4 months or so will get us to a potential bottom by September or October. Any counter rally at that time will also produce another fake bull market. It may seem a bit long in this counter rally but I have no doubt that this could all pick up in speed in a dramatic fashion.
As each stage happens then they all help in pointing us to where we are in the bigger picture. Talking about any move early is the key because after it happens, its pretty useless information. Fears of a depression will be in the news but markets do the opposite of fundamentals like they did in March of 2009.