SP500 Midcap Intraday Update

This SP500 Micap chart has also stopped well short of making a new record high. What I have looks like another zigzag rally, but I can change the “A” wave in Minute degree, so we end up with an expanded pattern instead.  We have two strong bottoms that eventually must get retraced to help to confirm that the bigger bearish cycle is in play.  There is no guarantee that we will get a flat in this Cycle degree correction, as a big zigzag could be another option as well. If a Cycle degree zigzag is the case, then the wave 1 in Minor degree can become wave 1 in Intermediate degree.

One good thing is that we have a single peak to count from, as no double top even came close. With the Russell 2000 it’s not that obvious, as it is very close to a double top. At this time it can also work as an inverted wave 2, but one little spike to a new record high will instantly trash it’s wave count.

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