Although our Lindsay work doesn’t call for a low until this week, last Friday may have seen the beginning of the mid-May to early June bounce in equities that is expected in the eighth year of a Presidential term. A “reprieve” for the markets should not be confused with a “pardon” as it is only temporary. The early June high is then followed by a long decline into Nov/December in these “eighth years”.
Looking out longer-term, A break of 1,815 (chart) will trigger an important distribution top formation that measures a minimum decline to 1,500. A bearish/rising wedge forecasts a minimum decline to 1,100.
Get your copy of the May Lindsay Report at Seattle Technical Advisors.com.