Pullback In Play...
Yes, it's a small one, but that's how the bulls keep going as they don't let the trapped bears out, or new bulls onto the bull train. Today should mark the low for my Small Wave 4, and it's not looking like it's going to be very much of a pullback. Support is at 7275 SPX, which is roughly 60-65 lower then the close yesterday. That's about all I can see for this pullback, which is basically the retest of the May 1st high and a gap fill from May 5th.
I would have loved to see it retest the 7150's on the ES, which is where I labeled my S4 on the chart I posted on X Wednesday. I noted it incorrectly though, as I said "Expected low date is Friday, May 5th", which today is Friday, May 8th, and that's what I meant to type. Also, the "Expected next high date is Friday, May 11th" should be Monday, May 18th... not sure what I was thinking when I typed that up (sorry). Here's that chart again...
As you can see I was "kinda" suggesting we could retest the sideways zone in the 7150's, but it's too obvious, and won't likely be hit. Every bull (and bear) is looking for it, as bears want out and bulls want to buy that level. The zone is around 7275 SPX (7285/90 ES), and "if" it reached today I'd look to go long. This market should hit the 7600 zone easily by June 5th, and possibly 7700 or even 7800? But once that date area is hit the top is going to appear.
We should see everyone calling for 8000 around that time, and it should not hit. It's a very obvious target, and the market never gives everyone want they want and expect. If it were to hit 8000 then it would go through it by 100-200 points to take out the shorts at 8000, but I don't think it will get that high. I suspect it will be in the 7700-7800 zone when we top. Who knows? Maybe we see 7777 or something?
There's a window of June 1st to June 10th for the expected highs according to prior cycles, but most of those cycles point to around June 5th, so that's the zone to look for. For now though, whatever low we see today (which could extend into Sunday night or Monday open) is likely all we will see and it's more squeeze next week.
Have a great weekend.
