The rally I was working has traveled further than what I would like to see, which makes the unthinkable of a new record high a real possibility. This January rally being a small degree was enough to force a review starting back at the 2009 bear market bottom. In this case, I looked at extending wave 3 in Intermediate degree. I’m sure this market rally has something to do with investors trying to top off their retirement accounts. That December 26th bottom left a big spike behind, which is one big clue that this bottom can hold for longer than the bears anticipate.
From the September 2018 peak to the December bottom we also have a pretty good looking zigzag at this time. Any zigzag can get completely retraced but that could now take all of January to accomplish. A run back up to the 2800 price level, could happen as this rally still seems to have more power behind it. The key will be that on the intraday scale higher corrective lows keep forming.
This 2018 peak will need more work, as the September peak can turn into a wave 3 as well. The Gold/SP500 ratio is about as expensive as I have seen so there is nothing cheap about this market just yet. Today we are at a 2:1 ratio with the record being about 2.41:1. The cheap Gold/SP500 ratio is about .75:1, so there is a long way to go before this SP500 becomes cheap again when we compared the SP500 to the price of gold.
I have not been able to update as much as I would like and it may not get any better at this time. I have some serious issues I have to deal with which cannot be resolved this spring or even this summer, so my postings will be far less than what I would like to post.