Last week was a bit dull compared to the one 2 weeks ago, but the market was still able to make a new ATH on Tuesday the 13th. After that, the action was choppy and sideways, the market making higher lows and lower highs. That is typical for an EWT triangle formation, which would suggest it could be a 4th wave with another 5th needed to take us to ATHs again before a turn.
Coming back to the cycles, we had no new development on the weekly. The resistance triggered on ES was whipsawed, but the market couldn’t break above it with conviction and closed right in its vicinity. YM still didn’t trigger a resistance level, which is something to keep an eye on.
The daily cycles are both in confirmed up impulses now. Normally we would expect them to have regular unwinds, meaning BRs and ENDs before they finish. Reaction to a triggered BR or to the break-out levels in case the market heads there directly, will be telling for the intermediate term direction. Of course right now there is no sign of a turn and the market could continue higher in the mean time. The directionality tool on YM is pegged at the highest level and is getting a bit long in the tooth for a pullback. That would also provide clues of a potential turn once it starts moving.
The 288 and 480min cycles You need to be authorized or upgrade to see this content. Please go to http://mcm-ct.com/membership-signup-dev-2/ to sign up.