The market should finish Intermediate Wave 4 today, possibly in the morning before we head down again to Groundhog Day. My models have the most agreement around 4436 for the top so that is my conservative top for now. Wave 5 still needs to take us below Intermediate Wave 3's bottom of 4222.62. Earliest guess is a bottom south of 4100 and relatively quick. I will readjust once wave 4 data is finalized.
Great news for most of February as it is rally time. But the rally will be short-lived. Earliest forecasts are gains around 11% off the bottom but this could change. We have one more major fall set for end of February and most of March. After that we will work back toward all-time highs.
Regarding the gap this morning is Fed-hype, maybe hoping the "jobs data" will delay the Fed's action. But reality will set in after the meeting that inflation is out of control, hence the drop to end this month. Then short-term memory will forget the last month as large company earnings trickle out in February which likely paints a semi-rosier picture than what we had from the inflation fears. Inflation is here to stay, the new prices we pay today WILL BE the lowest prices we pay from here on. Businesses will not slash prices once people are accustomed to paying them and the businesses are complacent with the profits.
Great news for most of February as it is rally time. But the rally will be short-lived. Earliest forecasts are gains around 11% off the bottom but this could change. We have one more major fall set for end of February and most of March. After that we will work back toward all-time highs.
Regarding the gap this morning is Fed-hype, maybe hoping the "jobs data" will delay the Fed's action. But reality will set in after the meeting that inflation is out of control, hence the drop to end this month. Then short-term memory will forget the last month as large company earnings trickle out in February which likely paints a semi-rosier picture than what we had from the inflation fears. Inflation is here to stay, the new prices we pay today WILL BE the lowest prices we pay from here on. Businesses will not slash prices once people are accustomed to paying them and the businesses are complacent with the profits.
All forecasts are based on analysis of past behavior. Prior movements are not always indicative of future movement. Develop the theory, test the theory. Do your own research. Nothing in this analysis constitutes advice. YouTube For More. Good luck!!
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