Wednesday April 22, 2020
As previously mentioned, Wave 2 in a bear market exists to re assure the masses that the trouble is past and the bull market has resumed.
Wave 2 is doing an excellent job of this. My e mail from supposed pros and experts is over flowing with glee
Remarks like the indexes have moved out of bear territory, what stocks will perform best in the next ull market
ignore the fact that the uptrend has been broken.
Transports 120 minute
I suspect the Transport peaked April 9. That would have been the end of Wave 2 correcting Wave 1 which ended march 23. Now Transports are selling off as indicated in the same time period but for one month.
Here the top April 9 is clear. The sell off from that point is clear. Notice PMO peaked April 9. The moving averages are coming together which usually precedes a change in trend. The next big move will be down, and in a large fashion as Wave 3 of 5 develops.
The SML S & P 600 small cap index is also ttelegraphing weakness.
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