The McClellan oscillator is getting oversold, especially in the Nasdaq. We should get a bounce soon. Depending on how strong the bounce is will give us a clue as to whether we complete the ICL in July or whether we’re going to need another entire daily cycle before the final ICL, and this stretches out to August or early September. If the SPX rallies above the June high then I’d say it’s going to require another complete daily cycle. In this scenario the Nasdaq will probably tag 8000 before we start down into the deeper ICL. A weak bounce that tops in just a few days would lead to a second leg down and a larger intermediate bottom in July.
Meanwhile gold is really stretching the rubber band as it moves down into its yearly cycle low. The further the rubber band stretches to the downside the more fuel and the bigger the rally should be once the trend reverses. This should power a monster rally once the YCL is completed.
