I thouıght we are already in the correction mode but it seems we just made wave 4 of bigger A and have entered now wave 5 of A up. In the bigger picture we have almost all indices in a week 9 count now and that means basically in 8 out of 10 that a correction is due. What made me a bit uncomfortable last week was that to many were speaking of a correction that is a bad omen usually.
As we got quite close in the SPX to the 200 day MA and the market did not test it yet. It must be the ultimate goal of the club who tries to bring everybody on the bull train to get the market up there to convince them to jump on. My target for the overall rally was 950 but we got there almost without any corrective wave which is very unusual. The correction of last week was almost exactly 24% and we are heading now for the highs again but in a flat zigzag manner. As we are heading for a long weekend it will be next week until we top out before we might see a little round of profit taking in the second half of the week. Volume remains low as no real buyers are entering the market yet. We are basically in the same pattern we had during the counter rally in 2008 which topped out May 19th but this time we might be a week later.