• 5 hours Biden Will Be A Boon For Solar Stocks
  • 2 days The Gold Rally Has Finally Run Out Of Steam
  • 2 days Citibank Analyst Predicts $300k Bitcoin By End Of 2021
  • 5 days Bitcoin Lives Up To Its Safe Haven Status In A Big Way
  • 5 days 14 Million People Will Lose Unemployment Benefits On December 31st
  • 7 days Why 12 Million American Millionaires Isn’t Good News
  • 8 days Big Oil Is Paying The Price For Investing In Renewables
  • 9 days The Banking Industry’s $35 Billion Gravy Train Could Disappear
  • 10 days Did Amazon Just Democratize Prescription Drugs?
  • 11 days The Private Space Race Just Got Very Real
  • 13 days Short Sellers Are Willing Big In This Turbulent Market
  • 14 days SpaceX Gets Go-Ahead To Send Humans Into Space
  • 15 days Saudi Arabia Lost $27 Billion In Oil Crash
  • 16 days China’s Big Tech Takes A Hit As Regulators Crack Down
  • 17 days Black Friday Could Be Retailers’ Only Hope
  • 18 days Why You Should Not Dump Your Stay At Home Stocks Just Yet
  • 19 days The Real Reason Why Uber And Lyft Stocks Have Soared Nearly 50%
  • 21 days Bitcoin Heads Towards $16,000 And No One’s Cashing In
  • 22 days Elon Musk’s $250 Tesla Tequila Is Already Sold Out
  • 23 days Will The San Francisco Wealth Tax Spark An Exodus Of The Rich?
How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

Brad Gudgeon

Brad Gudgeon

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…

Contact Author

  1. Home
  2. Markets
  3. Other

Stock Market Update

The chart below shows an alternative wave count to the one I proposed earlier this week. At this juncture (8/9/16), we have made a new high at 2187. The daily Stochastics is not confirming this new high, and the top looks irregular along with a tight Bollinger Band. In the past, the market may have pulled back nearly 10% from one of these tops and taken several weeks to do so. But, we have Uranus Retrograde and we may expect the unexpected, especially since the moon conjuncts Saturn and Mars over the next few days in the exaggerated sign of Sagittarius as we get closer to Saturn "Stationary Direct" (lows are often made while the moon is in Sagittarius).

The alternative scenario has the SPX dropping suddenly into the 32 TD low due on August 11 to as low as the 2089, 50% retracement area of the move from the June 27th 20-week low (wave 'b' of "c"), and then rallying one more rally into August 17th to near 2219/20 (wave 'c' of "c") forming a 66 week cycle top from the May 20th, 2015 high. This scenario would mirror 32 TD's ago (June 23-27), but not as deep, as the degree wave is not the same.

Normally, wave 'b' would go back into the shadow of the previous wave "b" and that is between 2074 and 2109. IF the SPX hits the top of the rising trends tops next week, then that should be the high of the year and the market would then tumble down into a Wave A of Z low (Wave C being November) somewhere around September 7 where the perfect 10 week, 50 TD low is located (June 2nd is within reach also at 48 TD's -2 TD's).

IF the SPX fails to get down through 2147/48 this week, all bets are off for any higher upside targets for the month, the earlier scenario would likely see the SPX taking out the June 27 low by September 2.

SPX Daily Chart
Larger Image

The market is like playing a chess grand master, you have to figure out what the possible moves are and position yourself accordingly.

 


Brad Gudgeon, editor and author of the BluStar Market Timer, is a market veteran of over 30 years. The subscription website is www.blustarmarkettimer.info

 

Back to homepage

Leave a comment

Leave a comment