S&P500 ~ the bear market rally is in the very late stages as the last sub-waves continue to form...


The past few days the market has grabbed any little piece of news that can possibly be positive. Most traders are scratching their heads trying to figure out why the market is going up.

This is what happens during a bear market relief rally. However, we've been prepared for and anticipated the rally since the low three weeks ago all based on the Elliott formation.

The markets are in the process of anticipating that the Corona virus will peak out and factoring this into the price. This is good because the market is always ahead of the fundamental events that take place.

In our opinion better news taking place now with the virus has allowed the wave 2 correction.
But, it is also our opinion that there isn't anyway that the markets can be factoring in the recession that will take place in the months ahead with this rally.

When markets finish the relief rally price will reverse hard to the downside to factor in the economic disaster that the lock down of the country will cause.

Today's charts show the wave formation is in the very late stages as the last few sub-waves unfold to complete the "minor" degree wave 2.

The pattern is unfolding as a 3-3-5 "flat"...which means that the [a] wave sub-divideds as three waves...[b] sub-divideds as three and now [c] is sub-dividing as a five wave impulse.

Tomorrow is a holiday and one of only a couple where the market actually closes. With Corona still hanging around there won't be much to do.

I'll do a video at some point over the next couple of days to explain the charts in detail.

Subscribe to the YouTube channel, if you haven't already, because if we're right about the markets, we're getting ready to really break records as "minor" wave 3 down begins!!!



Follow the Trend
and
"Trade Safe"

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