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Market Summary
What has happened?
· The last several days, we had a high level sideways consolidation in market indexes. Feels like gathering energy for another, possibly last, push higher.
· Indexes had a small drop into NVDA’s earnings and a whipsaw in the after-hours session before bouncing nicely in the futures market.
· What is next?
· It would be ideal that when indexes reach existing targets, about 2-3+/-% higher, CNN’s Fear & Greed gets into the extreme greed territory.
· SPX, NDX, and DJI are not far from a top of significance, neither in time (give it a week or tow) nor price.
· Then I expect a bigger correction to commence by mid-June or so.
· It is still a good strategy to sell the rips (RIPs), i.e., raise cash, gradually, as we have been suggesting since December, especially since February-March. 🤑
· Buying the dips (BTDs) becomes more risky as indexes approach targets.
· My intermediate- and long-term views have not changed. They are bearish. 👇️
Market data as of close on 22 May 2024.
To have maximum benefit from the newsletter, it is essential to follow me on X, where I often post important and timely charts between newsletters.
Yesterday, in the after-hours session, I posted an NVDA update after its earnings release on X. It almost reached its highest target.
- #NVDA spiked after earning above the Keltner channel and was rejected by the gray channel.
- It should reach the highest target (80D, posted some time ago) after a minor consolidation, with strong negative divergences in RSI and MACD.
- $NVDA wil top soon and likely also #SMH… x.com/i/web/status/1…— BraVoCycles Newsletter (@BraVoCycles)
10:57 PM • May 22, 2024
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Cycle Analysis of Major Indexes
· Various time cycle analyses I shared with you indicated that indexes should peak by early (maybe mid) June or so.. . .
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