LT wave for June
Posted by Danny on June 1, 2015
US markets keep going sideways. Since early April the S&P 500 has been hovering within a narrow 70 point range, or a little over 3%. That is very unusual. The Nasdaq is still hesitating just below its all time record highs. Here is the current chart (click image to enlarge it):
We are in a lunar red period and stocks have come under some mild pressure. The Earl indicator (blue line) is pointing down, while the slower Earl2 (orange line) is tentatively going up. The stalemate continues and perhaps it will take a new record high on the Nasdaq to end this sideways saga. The old high still stands at 5132.52, dating back to March 10, 2000.
Months of sideways action has probably put a lot of investors in rather neutral mode, and that sets the stage for a significant trending move once the market makes up its mind.
We are starting a new month, so here is the LT wave chart for June (click image to enlarge it):
The LT wave for May did quite well again. The low and the high for the month matched the expected pattern beautifully.
For June the wave projects another weak start, with a really strong period starting around the 15th. The final days of the month could show renewed weakness. Lowest values come on the 4th and on the 30th, and the highest LT wave reading will come on the 18th. Let me remind again that this LT wave is experimental and will not always work as well as it has done in recent months.