LunaticTrader

Investing with the Moon

LT wave for June

Posted by Danny on June 2, 2017

Markets continue to record new highs and the S&P 500 seems to have broken the resistance near the 2400 level. I didn’t see too many “sell in May” tweets, probably because that strategy failed last year, but that doesn’t tell us anything for this year. I would just ride this rally as long as it lasts, which is what we are doing with our reversal levels strategy.
How long? Well, the bullish scenario I updated last December is still on track: Dow 32000 revisited. It is feasible for the S&P 500 to reach 2500-600 by summer and then a final autumn surge could follow suit.
At the same time I want to keep an eye on the 88 year crash cycle I explored in this post from 2013: The long term crash cycle. This pointed to 2017 as the next candidate for a mania and crash. We will find out soon.

Let’s have a look at the Nasdaq before giving the LT wave chart for June:

^COMP (Daily) 8_18_2015 - 6_1_2017

Indicators are pointing up again after the brief pullback in mid May. We keep seeing a pattern of higher highs and higher lows. It is hard to fight a market like this. Short sellers keep getting punished and once they give up completely we may get the kind of final surge that pulls in the last bulls. Keep your eyes open and your ears closed.

Our LT wave had a decent month in May, here is the wave for June:

ltwaveJun2017

Expected strength until the 9th saw the S&P reach 2400 for the first time. The weaker period until the 23rd produced a significant dip followed by a strong final week.
For June the wave projects continued strength until the 5th and then a weaker period until the 20th. The final week is expected to be strong again, a pattern we have been seeing for several months.

3 Responses to “LT wave for June”

  1. PJ said

    What about the 90 year cycle? 1842 1932 2022 ?

    Thx! Paul

    Sent from my iPhone

    >

    • Danny said

      Hi Paul,
      I don’t see any reason to consider a 90 year cycle.
      It takes more than 1842 1932 to have indications that there is a cycle at work.

  2. TONY said

    Thank you so much!

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