The chart below shows the S&P e-Mini futures (currently at around 2065).
- My feeling is that we should see them continue up to the 2094 - 2107 range for the current wave higher (wave (v) of iii of 3). That should only take a few more days.
- Then, we should see a pullback to either 2019 (if 2094 is the peak) or 2032 (if 2107 is the peak) for wave iv of 3. Previous pullbacks in this cycle have lasted 3 - 5 trading sessions. Those with little to no exposure to stocks can buy in on this pullback.
- That should be followed by another thrust higher perhaps all the way up to 2160 or so for wave v of 3. That rally should last 3 - 10 trading sessions. Definitely worth taking profits on long positions here.
- We should then see another move back down to 2020 or so for wave 4. Estimated duration will be 3 - 10 sessions. Another opportunity to buy stocks on a dip.
- Finally, we should see a move back up towards the highs at 2150 - 2170 for wave 5 of this set. Again, expect a duration of 3 - 10 sessions - probably 10 based on the expected magnitude of this move. That takes us out to approximately the end of May. As the old saying goes, "Sell in May and go away"!!
- Once that move plays out, that may mark the end of the upside for quite a while. We will be looking for a renewed bear market which takes prices down 30% or so.