[S+P500] update

So far so good for the model from the backlink below.



Shorts should be calling the shots right from the open on Monday.  I bought into UVXY into the close.  I count 5 down from red 4 into cyan 1 and then a-b-c to the level of the prior 4th into cyan 2.  Next week should be a bloodbath in equities.  The real question will be this: do commodities begin to seriously decouple from the major indices next week and my view is most likely so.  Either that or the broader indices crash quickly while commodities go sideways and then both go back up over the next 6+ weeks with commodity services and miners doing the vast majority of the big moves.

None of this is predicated on fundamentals.  There is no such thing as a reliable "fundamental" in the stock market.  The herd has clearly been shown to over buy or over sell based on EMOTION.  Share prices moves are emotional and thus the only real way to have any chance at predicting the herd movements is via something that tracks mood.  That is what EW does and nothing else that I know of attempts the same kind of tracking.

Note: we should see weakness in the markets right from the opening bell on Monday and anything else should be a warning sign that this wave count is incorrect.