The 3 wave structure of the BEAR MARKET RALLY since March lows is more clear on the Dow and sector ETFs - especially XLF.
Elliot wave theory calls for going to March lows again.
June 8 was the end of this bear market rally and we are now completing wave c of 2 of the larger C wave down.
Minor wave c of 2 of larger C stIll unfolding higher and needs one more minor 4 and 5 higher to complete the pattern before the drop to March lows begins which should take us to end of summer if not the end of Sep.
I see Fed stepping in more in August to slow the drop and new major rally should begin once we test March lows. More fiscal stimulus should come by end of July also.
Nasdaq rise to all-time highs is NOT being confirmed by Dow and S&P and this is a huge bearish divergence.
The NASDAQ 100 on daily charts showing triple bearish divergence with MACD. The upside is limited and NASDAQ 100 should snap back to downside also.
Dow is the weakest and will lead the way down on all major US Indexes.
See my latest posts on VIX, US Dollar Index and comparison of VXN with the NASDAQ. Risk off is coming. Those calls on VIX and DXY (US Dollar Index) confirming a bearish outlook on the S&P 500 I have shown in the above Elliot wave count.
siestacay
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Welcome back!.I am one of your followers who have waited for your next Elliot wave charts.Thanks much....Guy
cyrusgr8
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@siestacay, Thanks. Hope you have been ok all these months. :)
siestacay
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@cyrusgr8, thank you and of course hoping that you and yours as well. Will catch up and do appreciate your charts and timing. Crazy times and its interesting to watch the excessive greed....slow and steady and observant in keeping the emotions of greed among others in check. Be well and thank you.