Per Investors.com (IBD), a correction continues to grip the general markets. Seven of the S&P 500’s past eight gains have come on below-average trading volume, meaning that institutional investors haven’t supported the latest attempt at all-time highs.
The short, intermediate, and long term Elliot Wave uptrends remain intact
As always, let market action tell you what to do. Until then, a defensive stance is warranted.
The week started with a positive Monday, sold off on Tuesday, then ended within one point of the SPX 1902 all time high. The SPX/DOW were +0.95%, the NDX/NAZ were +2.40%, and the DJ World was +0.90%. On the economic front positive reports outpaced the negative 5 to 1. On the uptick: existing/new home sales, leading indicators, the WLEI and the M1-multipler. On the downtick: weekly jobless claims rose. Next week, holiday shortened by Monday’s Memorial Day, we get the second estimate for Q1 GDP, Personal income/spending and the Chicago PMI.
LONG TERM: bull market
The Cycle wave  bull market continues to unfold as expected. Primary waves I and II completed in 2011, and Primary III has been underway since then. When Primary III concludes we should get a multi-month 15% to 20% correction for Primary IV. Then another uptrend(s) to new highs completing Primary wave V and the…
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