Kiy - When I say "Bull Gap 60.31 (OB)"
My long term Bull/Bear signal is the EMA 3/8 or MACD (3,8,1)
When the EMA 3 crosses above the EMA 8 and is confirmed at the close of the month a bull market is confirmed. When the EMA 3 crosses below the EMA 8 and is confirmed at the close of the month a Bear market is confirmed.
The gap that I refer to is the distance between the EMA 3 & 8. If the EMA 3 is on the Bull side, then the gap is referred to as a bull gap and when the EMA 3 is on the Bear side the gap is referred to as a bear gap.
Currently during a Bull Market the average widest Bull gap during a bull market is 48.79, during a Bull-2 which is what is currently confirmed the average widest bull gap is 61.77, we are also currently in an unconfirmed Bull-E-2 which could be confirmed at the end of March. The average widest bull gap for a Bull-E-2 is 59.81.
So by looking at the current bull gap, it's telling me this bull market is currently over heated and to expect a major correction (Weekly) in the near future. Looking at my SPX Cycles indicators report, I see that the weekly is OB on two levels 1. the EMA 8 OB indicator and 2. the LTL OB indicator. So one of two things will occur. We get a Daily extended P1 (down move) keeping the Weekly in it's W-E-2 phase, but corrects the OB condition or the Weekly W-E-2 ends early before it's March 10th high is due and we get a weekly correction P1 that resolves the Bull market OB condition.
AI
