Tuesday May 19 2020
Looks like the fourth wave got underway the last 1.5 hours of trading today. I would guess the target is the coalition of MAs around 23,900-24,000.
We noted there was not the kind of volume one would expect to push the Indus 900 points higher. So it will be interesting to see how high our fifth wave
goes.
What About Breadth, is it improving?
Glad you asked and here is the answer.
Despite the 900 point rally the percent of S & P stocks over their 150 day MAS barely budged. Again this looks like a lack of breadth. If this were a real bull market, this measure would be rising as more investors sought 'bargains.'
At bottom note PMO peaked with what we believed to be the end of this WAVE, April 28-9. Since then it has fallen. This is what one would expect in the subdivisions of three thru five of the last wave, declining breadth and strength. All this coupled with the lack of expanding volume again suggests a market on borrowed tim
% Over 50 Day MA
If the Elliott analysis is correct this chart will NOT make a new high with the fifth wave. t bottom PMO is declining already.
e.
Monday's rally of course thrilled the new bulls, my e mail runneth over with thrils over the new bull market, what 36 million out of work, who me worry?
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