IWM daily, bearish outlook
NASDAQ Comp
Dow
Sp, bullish outlook
Transports
Summary
The above selection are a real mixture of outlooks. I'm trying to keep a very open mind as to what happens in the coming few weeks. The bounce/rally, could easily just be a minor wave'2 UP, before a collapse wave in June.
It will be imperative for short term traders to watch for the market getting stuck at either 1340, 1370/80..and whether it can break above 1295. A move over 1422 would doubtless dismay the bears, and lure in another large number of permabulls.
My best guess?
I defer to the monthly charts when I'm unsure, and monthly charts say 'sp'1100s this year'. As I noted this past weekend, it is even viable we get new highs briefly in June, before quickly falling back - aka, the 'ultimate mind-frak for traders'.
Right now, my best guess would be we move up to that big resistance area of sp'1380. That would make for a strong minor wave'2 UP of 7%, and if we do rollover at that level, a swift and severe collapse to the sp'1150/00 level would occur in the span of 2-4 weeks, no later than early July.
For the moment, I remain in an underwater long position, looking to exit around 1340..where I will reassess.