Strong Counter Trend Rally Expected Into May 29th

The NASDAQ and Russell 2000 both made new lows today, but the S&P 500 (and Dow 30) did not, creating a temporary slightly bullish divergence. But overall, the pattern is worrisome for the market after the expected relief rally into next week.

The next cycle low is due somewhere between June 5th and June 12th. 115 TD's is the maximum expected for a 20 week low and that hits on June 12.  June 12th also melds with my work for an important low in the precious metals sector.

I had earlier on thought that the S&P 500 bottomed its 20 week low on May 13th at 94 TD's (I had also thought that it might occur in early June).  The 20 week low can run 85-115 trading days. As you can see on the first chart, a forming a-b-c type "B" Wave developing.

May 13th bottomed on the 16 TD low, which can run as much as 20 to 21 trading days, putting the next timing band around June 5-12 for the (z) of B Wave low. This would then place the Wave C of "Y" top out into early/mid August for the stock market and quite possibly the mining share market too.

Brad Gudgeon

Editor,

BluStar Market Timer

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