During the first part of June, the markets began to soar which at this point is one of the largest rallies since April.
During the last 2 weeks of May, the pattern changed again, which I can count as a diagonal wave structure containing 7 waves. The SP500 E-Mini has now entered my previous 4th wave position but has also entered 2 previous smaller degree 4th wave peaks as well.
In a bear market rally, so many previous 4th wave peaks offer serious resistance even though this stock rally can advance some more. Going above the previous 4th wave in Minute degree can happen but that is a bit rare as well.
Yes, I moved my Minor degree wave 1-2 around but basically, May produced 5 diagonal waves down.
Many analysts are very bullish saying it’s time to jump on, but that usually never works well if a bear market is much bigger than anyone is thinking right now.
I think the markets have to give us a Cycle degree correction, as a Minor degree move is just window dressing at best.
This contract will only last until the 3rd Friday of the contract month so by the end of June investors have to make a huge move into the September contract month.
So far the SP500 has displayed some nice impulse waves but the May decline best fits into a diagonal.
There are only so many seats on the bullish bandwagon and when the music stops, can you jump up fast enough and forfeit your seat?