The markets took a “Big” dip since last week and many experts are talking about buying the “Dip”! Sure it looks like an impressive dip but I believe the bears still want to shred some more stock bulls. So far, we are in a counter-rally which may be a wave 2 in Minor degree.
Buying the “Dip” for what? Another bull market or are we just in another bear market counter rally? I don’t think this market will let the stock bulls off so easily as this was just a wake-up call for what’s to come.
There is no real support just yet as the SP500 should fall below the June 2019 low. 2750 could supply support but the big support range is 2350!
We are at a Cycle degree top and Cycle degree corrections are not over in just a few days of crashing prices. Besides that, solar cycle 24 is here, which could still last a year or so. My bet is that this top is the last record high for the year so this might go on until we hit the lowest point of the year.
If stocks have yet another major move up then, to put it bluntly, Gold and gold stocks would crash.
The Gold/SP500 ratio is 1.94 which still has a long way to go before this market is really cheap when using the gold cash price.