Possibly starting wave C down soon. Might see a throw over of this ending diagonal before the fall, but at this point even Cramer is saying "stupid" money is rushing in to the market.
RUT (those stocks who are at most risk of a near term default) and the smaller components of the SP500 are actually getting a bid now! The airlines (guess retail did not learn from the Hertz disaster) are getting pumped.
This rotation was needed prior to the next leg down. The Mega-Caps (MSFT, AAPL, AMZN, FB, GOOG) could not shoulder the burden of the next leg down all by themselves...they needed their smaller SP500 components and small cap brothers to run up a little so the fall could be a little more distributed.
This market hope is misplaced...just as the market was blind to Covid in late February, the market currently is blind to the economic disaster that is hitting the US. The veil is about to be lifted and it is not pretty out there.
Below: SPX ABC correction---C wave impending.
Below: RUT testing (and likely to fail) the previous trend line that was previously support and will now be resistance.
RUT (those stocks who are at most risk of a near term default) and the smaller components of the SP500 are actually getting a bid now! The airlines (guess retail did not learn from the Hertz disaster) are getting pumped.
This rotation was needed prior to the next leg down. The Mega-Caps (MSFT, AAPL, AMZN, FB, GOOG) could not shoulder the burden of the next leg down all by themselves...they needed their smaller SP500 components and small cap brothers to run up a little so the fall could be a little more distributed.
This market hope is misplaced...just as the market was blind to Covid in late February, the market currently is blind to the economic disaster that is hitting the US. The veil is about to be lifted and it is not pretty out there.
Below: SPX ABC correction---C wave impending.
Below: RUT testing (and likely to fail) the previous trend line that was previously support and will now be resistance.
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The throw over idea up close. Watching to see what happens.
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Throw over turned into another wedge that temporarily broke out.
On SPX (not the futures), the chart was consistent with a wedge, throw over, then break down.
On SPX (not the futures), the chart was consistent with a wedge, throw over, then break down.
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Big test here. Does the diagonal continue to be relevant?