Stock Market Pull Back Shallow, More to Go

By: Brad Gudgeon | Wed, May 3, 2017
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The market is gradually becoming oversold with much resistance. The cycles suggest a low no later than around Friday this week. May 17th is the next three week cycle top and is also a Saturn turn. Waves tend to equal each other in time and price, especially an "a-b-c" type advance. We are in wave 'b' of that advance. This would suggest a low late in the week probably somewhere near to SPX 2361/62 and a final top (wave 'c') on May 17th near to 2431 (see chart below).

GDX will likely rally into week's end to around the 22.50 area and then fall as the stock market rallies. GDX should find its final low near 20.50 in the coming weeks.

S&P500 Hourly Chart
Larger Image

Our SPX3 subs are still short, but eyeing the coming buying opportunity (you can see the sideways distribution pattern that usually comes first before a drop). This last 'c' wave should be it for the rally that started on February 11, 2016. I'm looking for a major summer low (Primary Wave 4?) and then one more strong rally into September 2018. September 2018 looks eerily similar to the 1929 top, in my opinion. We are due.

 


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Brad Gudgeon

Author: Brad Gudgeon

Brad Gudgeon
BluStar Market Timer
Blog
eaglesoveramerica.com

BluStar Market Timer Investment Philosophy: The stock market is currently in a technical Elliott Wave Bear Market Rally. It has been exhibiting A-B-C type waves instead of the normal 5 Waves since the market topped in 2000. According to "The Original Works of R.N. Elliott", we are due for a move down to about the S&P 500 442/443 area in the next few years. In my opinion, this is no longer a buy and hold market, but a traders' market. We mainly swing trade the market with funds and ETF's, but otherwise trade according to the market's disposition and to the traders' discretion. For the year 2014, BluStar Market Timer is rated #1 according to Timer Trac. http://www.blustarmarkettimer.info

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