Hi Scott,
My read for this move up has been set since June 4th, and is as follows:
Primary wave 1 up lasted from Nov. 13th, '97 til April 6th, '98
Primary wave 2 correction " April 6th, '98 til June 4th, '98
Primary wave 3 up began from June 4th, and we are still in Intermediate wave 1 up of this Primary 3 rally.
Within this Intermediate wave 1 up rally, we just completed the 4th minor wave today (29th).
Minor wave 1 up lasted from the low on June 4th to the high on June 8
Minor wave 2 down " " " " high on June 8th to the low on June 12
Minor wave 3 up " " " " low on June 12 to the high on June 25
Minor wave 4 down " " " " high on June 25 to the late low today,
which was at the close. We now start a Minor wave 5 rally which should be 2 to 3 days in duration, and will bookend the Minor wave 1 rally in magnitude (approximately 40 S&P points). So I'm looking for the SPX cash to travel to the upper 1170's before this rally terminates.
This will complete Intermediate 1 up, and we'll be in for an intermediate 2 correction afterwards. Since Intermediate 1 up will have lasted nearly a full month, I expect Intermediate 2 correction to run at least 2 full trading weeks. It's depth is impossible to determine at this point, but if it lives up to typical Intermediate wave 2 corrections, there will be a sharp 30 to 50 S&P point selloff in there somewhere.
Regards, & Good trading!!
David |
