The market broke out of a broadening triangle formation today (the same exact ABC pattern in the long term chart) and it seems like it is going for the 1675-80 area. The 1.618 level of W1 happens to fall on 1681 and if the market makes it there then we will have a very ideal LT Int W3 wave. The 5th wave is now extending it is about to overshoot the most optimistic revised estimate I had from April which was 1668. So all I can say is WOW.. it has been a crazy bullish rally on no substantial earnings or economic growth, somewhat similar to Japan. When I speculated late last year on a rally until May based on the LT Int count, I thought it was going to be a rally based on accelerated improving fundamentals. But I guess it is all about the power of QE, which btw I should add that the Feds stock market model has the SP500 at 1700-1750 so they are executing their plan very well.
I ended up buying the VXX portion earlier today and in retrospect I should have waited a bit more. But it's ok, can't always have it my way. What I need to see now is the real top correction to 1580! lol.
Have a Great Weekend!
Main S&P 500 Trends
Short Term Trend = Bullish
Medium Term Trend = Bullish
Long Term Trend = Bullish
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