Best of the Week
Most Popular
1.UK General Election BBC Exit Polls Forecast Accuracy - Nadeem_Walayat
2.UK General Election 2017 Seats Final Forecast, Labour, Conservative Lib-Dem, SNP - Nadeem_Walayat
3.UK General Election 2017 Forecast: Conservative 358, Labour 212 Seats - Nadeem_Walayat
4.Theresa May to Resign, Fatal Error Was to Believe Worthless Opinion Polls! - Nadeem_Walayat
5.UK House Prices Forecast General Election 2017 Conservative Seats Result - Nadeem_Walayat
6.The Stock Market Crash of 2017 That Never Was But Could it Still Come to Pass? - Sol_Palha
7.[TRADE ALERT] Write This Gold Stock Ticker Down Now - WallStreetNation
8.UK General Election Results Map 2017 vs 2015 vs Opinion Polls - Nadeem_Walayat
9.Orphaned Poisoned Waters,Severe Chronic Water Shortage Imminent - Richard_Mills
10.How The Smart Money Is Playing The Lithium Boom - OilPrice_Com
Last 7 days
Gold Summer Doldrums - 23rd Jun 17
Hedgers Net Short the Euro, US Market Rotates; 2 Horsemen Set to Ride? - 23rd Jun 17
Nether Edge By Election Result: Labour Win Sheffield City Council Seat by 132 Votes - 23rd Jun 17
Grenfell Fire: 600 of 4000 Tower Blocks Ticking Time Bomb Death Traps! - 22nd Jun 17
Car Sales About To Go Over The Cliff - 22nd Jun 17
LOG 0.786 support in CRUDE OIL and COCOA - 22nd Jun 17
More Stock Market Fluctuations Along New Record Highs - 22nd Jun 17
Understanding true money, Pound Sterling must make another historic low, Euro and Gold outlook! - 22nd Jun 17
Green Party Could Control Sheffield City Council Balance of Power Local Election 2018 - 22nd Jun 17
Ratio Combo Charts : Hidden Clues to the Gold Market Puzzle - 22nd Jun 17
Steem Hard Forks & Now People Are Making Even More Money On Blockchain Steemit - 22nd Jun 17
4 Steps for Comparing Binary Options Providers - 22nd Jun 17
Nether Edge & Sharrow By-Election, Will Labour Lose Safe Council Seat, Sheffield? - 21st Jun 17
Stock Market SPX Making New Lows - 21st Jun 17
Your Future Wealth Depends on what You Decide to Keep and Invest in Now - 21st Jun 17
Either Bitcoin Will Fail OR Bitcoin Is A Government Invention Meant To Enslave... - 21st Jun 17
Strength in Gold and Silver Mining Stocks and Its Implications - 21st Jun 17
Inflation is No Longer in Stealth Mode - 21st Jun 17
CRUDE OIL UPDATE- “0.30 risk is cheap for changing implication!” - 20th Jun 17
Crude Oil Verifies Price Breakdown – Or Is It Something More? - 20th Jun 17
Trump Backs ISIS As He Pushes US Onto Brink of World War III With Russia - 20th Jun 17
Most Popular Auto Trading Tools for trading with Stock Markets - 20th Jun 17
GDXJ Gold Stocks Massacre: The Aftermath - 20th Jun 17
Why Walkers Crisps Pay Packet Promotion is RUBBISH! - 20th Jun 17
7 Signs You Should Add Gold To Your Portfolio Now - 19th Jun 17
US Bonds and Related Market Indicators - 19th Jun 17
Wireless Wars: The Billion Dollar Tech Boom No One Is Talking About - 19th Jun 17
Amey Playing Cat and Mouse Game with Sheffield Residents and Tree Campaigners - 19th Jun 17
Positive Stock Market Expectations, But Will Uptrend Continue? - 19th Jun 17
Gold Proprietary Cycle Indicator Remains Down - 19th Jun 17
Stock Market Higher Highs Still Likely - 18th Jun 17
The US Government Clamps Down on Ability of Americans To Purchase Bitcoin - 18th Jun 17
NDX/NAZ Continue downward pressure on the US Stock Market - 18th Jun 17
Return of the Gold Bear? - 18th Jun 17
Are Sheffield's High Rise Tower Blocks Safe? Grenfell Cladding Fire Disaster! - 18th Jun 17
Globalist Takeover Of The Internet Moves Into Overdrive - 17th Jun 17
Crazy Charging Stocks Bull Market Random Thoughts - 17th Jun 17
Reflation, Deflation and Gold - 17th Jun 17
Here’s The Case For An Upside Risk In The Global Economy - 17th Jun 17
Gold Bullish on Fed Interest Rate Hike - 16th Jun 17
Drones Upending Business Models and Reshaping Industry Landscapes - 16th Jun 17
Grenfell Tower Cladding Fire Disaster, 4,000 Ticking Time Bombs, Sheffield Council Flats Panic! - 16th Jun 17
Heating Oil Bottom Is In.(probably) - 16th Jun 17
Here’s the Investing Reason Active Funds Can’t Beat Passive Funds—and It Worries Me a Lot - 16th Jun 17
Is There Gold “Hype” and is Gold an Emotional Trade? - 16th Jun 17

Market Oracle FREE Newsletter

The MRI 3D Report

Last Week’s Stock Market Shallow Drop Portends Bigger Drop Ahead

Stock-Markets / Stock Market 2017 Jun 05, 2017 - 03:37 AM GMT

By: Brad_Gudgeon

Stock-Markets Last week, I was looking for a pull back into May 31’s 8 TD low.  The move down, however, was extremely shallow (wave ‘b’ 2418 down to 2403) and wave ‘c’ of Y looked to have finished on June 2 (or will finish by June 5 near 2440).  The trines of June 1 (Venus trine Saturn) and June 3 (Sun trine Jupiter) are usually found near tops.

On June 3, we have Venus conjunct Uranus in Aries (Mars rules Aries) and then the Sun squares Neptune in Gemini-Pisces June 4 while the Mars opposition to Saturn (May 29) orb still influences about two weeks out (through the end of next week).  Mars leaves Gemini the same day and enters Cancer.


On June 5, the moon enters Scorpio (rued by Mars and Pluto), typically a day when the market tops and falls into the Sagittarius moon. The moon will be in harmony to Mars and Neptune until June 7th.  On June 6 to 7, Mercury enters Gemini, conjuncting the Sun, but opposite Saturn and later the moon (a lot of conflict in mutable signs, not good for the stock market).

On late June 7th, the moon leaves Scorpio and enters into Sagittarius (conjuncting Saturn) opposing the Sun (squaring Neptune) and Mercury. By the full moon of June 9 we have Jupiter in Libra (opposite Venus and Uranus) turning stationary/direct.

This is a lot to chew on I know, but the implications are enormous. According to the e-wave count, the coming 10/70 week low (due ideally June 7 ) and the Saturn/Uranus trine topping influence (until about July 10th) as well as the chart of GDX, I believe I have the found the correct e-wave count (I was amiss on the correct count last week, I do apologize).

Currently, the On Balance Volume readings on the SPX and SPY do not confirm the late May top (over the March 2017 or mid May tops) nor the June 2 top over the late May top.  Price momentum confirms a higher high yet to come (July 10?), but not the volume-money flow momentum. This means selling pressure is increasing on down days and buying pressure is decreasing on up days.  May 31-June 2 showed the worst of the OBV negative momentum, giving us a hint that the stock market is about ready to drop, and drop hard and fast (I believe the May 31-June 2 rally was a sucker’s play).

The last Bradley turn was due June 1 and the next is due June 9th.  The next 8 TD low is due ideally early on June 12.  There is a 4 TD low (wave ‘a’ of Z of B) due Tuesday June 6 and a possible ‘b’ wave top due on Wednesday, which leaves the dreaded ‘c’ of Z drop (an Elliott third of a third) between June 7 and June 9.  By June 12, the moon will have already left Sagittarius and Capricorn (where the lows are generally found). The full moon is a reversal signature and so is Jupiter stationary/direct (my guess based on all this is that the FED will not raise rates in June). 

A large rally from June 9th to July 10th is likely with new highs perhaps into the 2450’s or 2460’s. My best guess is we see around 2274 SPX (see charts below) on the coming drop next week (down about 6.8%).  I see is a sudden sharp move up (9.8%) on GDX from June 7 to 9 (see chart below), which has me concerned that something sudden like a military strike or act of violence is about to take place (I mentioned this last week).

When all the dust is settled, the traders will see this as an opportunity to buy yet another dip.  After July 10, we have the Sun conjunct Mars in Leo on the 26th of July (which in the past has pointed to a 10%+ correction) surrounding this aspect and again Mars in Leo conjuncts the Sun eclipse over America on August 21 (which incidentally will come right over my house for 2 minutes and 30 seconds of complete darkness, I live 20 miles north east of Nashville, TN).

If the mining shares continue to trade opposite the stock market, then I believe August 24th will be the big correction low (or close). August 21 will be exactly 50 trading days from the expected June 9 low (which will be 52 TD’s from the March 27 low). The ten week lows run about 50 TD’s 6 TD’s. The August low will be the 10/20/40 and 80 week low (1.5 year) from Feb 11, 2016.

I have given two possibilities as to how low the stock market will drop into the summer.  My best guess is, we see a mild Running Correction of around 15%.  My thinking is based on the fact that Intermediate Wave Y of Primary Wave 4 went so far above the previous Primary Wave 3 (around SPX 2073, Nov 2015) and the Rising Wedge formation, which usually predicts a drop back to the second touch point ends at 2083. I can say with confidence that all of the Trump rally will be wiped out by August 2017.  What I can’t say for sure is if the Wave Z of 4 drop will terminate at 2083 or not.  IF the SPX breaks the area between 2073/2083 SPX, then I fear we are in for something bigger on the down side, like down into the 1700’s (see weekly chart below) to finish Primary Wave 4.

The chart of GDX shows a move up from the 20.40/.50 area on July 10 to the 28.00 area by August 24 (based on the Equality of Wave Principle and lines of resistance). This amounts to about a 38.5% move up (GDX and NUGT players take notice!).  I would think that if the stock market were to take a bigger hit than 15%, (and GDX was moving opposite the market due to fear) that the GDX move would be substantially higher than 38.5% by August 24th. It all remains to be seen.

The Mars placements in the charts in July/August are definitely warlike (or possibly just saber rattling), but in any case enough to cause fear in the markets.  I believe the USA will likely be involved and possibly Iran or North Korea (or both).  At this point, it is pure speculation on my part, so I leave the decision to fate.

Again, I caution investor/traders that the opinions here are just that: opinions.  There are times when the forecast becomes clear and amazingly accurate. However, there are other times when the waters become murky, making it harder to see. Each day brings new information to analyze, which allows one to trade the markets more effectively.

Brad Gudgeon
Editor of The BluStar Market Timer

www.blustarmarkettimer.info

The BluStar Market Timer was rated #1 in the world by Timer Trac in 2014, competing with over 1600 market timers. This occurred despite what the author considered a very difficult year for him. Brad Gudgeon, editor and author of the BluStar Market Timer, is a market veteran of over 30 years. The website is www.blustarmarkettimer.info To view the details more clearly, you may visit our free chart look atwww.blustarmarkettimer.com

Copyright 2017, BluStar Market Timer.  All rights reserved.

Disclaimer:  The above information is not intended as investment advice.  Market timers can and do make mistakes.  The above analysis is believed to be reliable, but we cannot be responsible for losses should they occur as a result of using this information.  This article is intended for educational purposes only. Past performance is never a guarantee of future performance.

Brad Gudgeon Archive

© 2005-2017 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife