Peter Temple, at World Cycles Institute, provides a current analysis of the SP500 (ES Futures) for the week ending May 25. Read the complete article and his broader examination of the many socio-economic indicators that suggest that the markets, and Western Society, are near a 500 year cyclical top. Visit World Cycles Institute.
We’ve now being going sideways at the top of the D leg of the triangle for two weeks. This signals to me that the market is exceptionally weak and having a tough time making it to the required target. I’m expecting one more wave up to complete the D leg. We’re either targeting the previous high or 2750.
Volume is exceptionally low, which contributes to the volatility and lack of momentum at times.
Once we hit the target, though, we’ll head down in the E leg. The turn will have to be this week, because we’re running out of waves … lol.
After the E wave down is complete, we’ll take off again to the upside in a fifth wave, which will simply finish off the pattern. We’ll get to a new high and probably more, but don’t expect (as I’ve been saying for a very long time) a large fifth wave that travels any great distance. (I think 3000 is possible but at the high end of the probability spectrum)
Summary: We’re not quite finished the D leg of the contracting triangle. Topping out will result in a high probability trade to the downside (the E leg of the triangle) Once E leg (down) is complete, expect a final fifth wave to a new high. That fifth wave up to a new high will be the end of the 500 year bull market.