Stock Market “Double Top” B Wave

On Thursday last week, we closed out our short positions in the low 2380’s on the S&P 500, looking for a possible move above 2400 by May 5-8. Today tagged 2401, a new high, but at the same time made a classic double top ‘y’ wave.  Next expectation is a move down (wave ‘z’ of “B”) to near 2360, the 50% retracement from March 27th. The best time based on the 4/8/16/32 trading day lows is Wednesday May 10.

The Wednesday before monthly option expiration is known as “Weird Wollie Wednesday”(coined by Don Wolanchuck) and typically sees a low near that date before launching into Options Expiration week. This week sees the full moon on Wednesday along with Mercury conjunct Uranus. Today was exactly 8 TD’s from the previous top on April 26th. A 1.7% down move is perfect to launch the next wave up, which should take the SPX up as high as the 2431/32 area the day after OPEX, May 22.

May 9th sees the Sun trine Pluto, which portends weakening strength in the market ahead. Mars sq. Neptune on Thursday should mark a top and Friday Mars trines Jupiter, another slumping day likely. The week ahead looks weak in the early going and choppy to finish. Bradley turns this week May 8th and 12th.

Next week sees a Saturn turn May 17 along with a possible 7 week low. The last two days of the week could see some large gaps up, finishing the final top on May 22. There is a Bradley turn due May 19th as well as Saturn trine Uranus.  This general time frame should represent an important topping area. Longer term players should take heed: a possible bear market looms directly ahead into the summer!

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