All of the indicators are telling me we are due for a correction soon. We saw a 30% gain in April. NVT is screaming at me and RSI is showing bearish divergence. I think with the amount of short interest it was bound to rise up again to squeeze out some people. It's nearly impossible to say how high it will go before it corrects, but I am confident it will. A return to the 200 day MA is highly probable. Market is incredibly greedy at the moment so i'm fearful. I do believe the correction will be complex and not a straight shot down, but I think there is a high probability of revisiting the $4,500-$4,800 range (with ease). I know many are calling for $4,000-$4,200 or even lower before the real bull market takes off. I'm not convinced we'll ever break $4,000 again. Good luck!
Comment:
I said it would be impossible to predict how high we go before the correction. Looks like the H&S failed and we formed another high. Looking at Elliot waves, that looks like the 5th and final one. I'm not ruling out $6K but there is a ton of resistance in that area and Bulls are getting exhausted. Upside reward to downside risk is not worth it at these levels. Pullback should be coming soon.