Time To Prepare - Market Analysis for May 8th, 2017

So, I want to prepare you emotionally for what may happen.   You see, if our primary count continues to play out, the c-wave down we are expecting will likely be quite scary. 

We have now seen the VIX strike levels it has not seen in over a decade, which means complacency is now at an extreme.  While the market got the “good news” it wanted to hear about the French elections, we are still relatively flat.  In other words, it does not look like there is much juice left in the market to the upside, just as we are approaching our targets for this b-wave.

And, when the market is unable to go up, well . . . it usually then goes in the opposite direction, especially as we are completing 5 waves up.  Moreover, in order to “re-set” the VIX to levels which can support a rally to 2500+ in the SPX, I think something can hit the market which can truly scare the market.  In fact, I would not be shocked to see a 2%+ down day in the c-wave to the downside that I am expecting.   Remember, c-waves often feel like “crashes,” as they set up the market for its next rally.   So, for this reason, I want you to at least prepare “emotionally” for a potentially strong move down.  The reason you need to prepare is because it will be a buying opportunity for the run to 2500SPX, but the manner in which I would want to see the c-wave down may scare you from being able to pull the trigger.  

But, I digress.  The micro pattern suggests that as long as we remain over 2392/93SPX, the market may try to squeeze some blood from the stone to get us to our ideal target region by tomorrow. But should we break down below 2391SPX, it does open the door to the market already having topped in our b-wave rally.