May 14th to 17th seems to be a possible cycle top date. The price target for the SPX would be around 950, so a quick pullback to 790 to 800 (50 day) would be a perfect
b
wave pullback. Personally, I'm probably not going to be buying into this rally. My goal will be to set up short position targets using out of the money puts on various stocks/etfs I'll mention later when we get into May.
Why?
Well, the idea here is that there are three wave counts all working together. You have a 'grand cycle' on top of a weekly wave cycle on top of a daily one. The monthly grand wave count is saying this entire decline was a wave 1. Only a wave 1 from the 2007 high to the 666 low! Yikes!
The weekly count says we just completed a wave 3 down (666 low) which is pushing us into a wave 4 up now. That wave 4 being a corrective wave is also made up a waves in which case is an ABC with the rally off the 666 low to the 875 high being the 'A' wave. The 'b' wave pullback we're in now should fall to 790 to 800 or the lower 50 to 61% retrace levels which then sets up the 150 to 200 point final C wave to that 950 to 1000 target.
All this should happen between now and May sometime. If the grand cycle is correct, then this is a wave 2 correction up off the wave 1 fall.
Bottom line, just expect a top in May and then go short.
AI
