This type of correction should take the SPX near or below the Major wave 4 low at 1627, and/or the DOW’s Major 4 low at 14,719. After it concludes we should get a resumption of the bull market to all time new highs to conclude Primary V and Cycle wave [1]. We have been projecting this all to unfold by Q3/Q4 2014.
COMMODITIES
Bonds - appear to be uptrending and gained 0.5% on the week. Rates are in a downtrend.
Crude - is trying to confirm a new uptrend and gained 2.7% on the week.
Gold - is uptrending and gained 0.9% on the week. Should equities continue to head lower Gold has an opportunity to move higher.
The USD - appears to be heading into another downtrend losing 1.0% on the week.
LONG TERM: bull market
We continue to count this bull market as Cycle wave [1] of the next Super cycle bull market. Rising Cycle waves unfold in five Primary waves. Primary waves I and II completed in 2011, and Primary wave III has been underway since then. Primary I divided into five Major waves with a subdividing Major wave 1. Primary III has divided into five Major waves, but both Major 1 and Major 3 have subdivided. Recently we have been in a steady Major wave 5 since August in the SPX, and October in the DOW.
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