The Cycles are providing more answers now, as the rally progresses. The end of next week will give the initial bearish Cycle and its retracement exactly 17.2 months. It appears that there may a few more days to complete the pattern, followed by a potential waterfall event. Initially, the Primary Cycle appeared complete on February 2. The pattern that followed did not reveal its true intent until it broke through the February 2 high.
SPX futures are higher this morning, and may rise to the Cycle Top resistance at 4274.54.
ZeroHedge reports, “US Futures extended yesterday’s rally after the Senate passed a bill late on Thursday to raise the debt ceiling and prevent a US default, with risk-on sentiment getting a boost following the sharpest rally in Chinese stocks for three months amid Bloomberg reports that China is mulling a new stimulus package to support the property market after existing policies failed to sustain a rebound in the ailing sector.
At 7:45am, S&P futures rose 0.5% to 4249, while the Nasdaq rose by 0.6% and was set for a sixth straight weekly advance. Europe’s Stoxx Europe 600 index followed Asian benchmarks higher, with luxury-goods makers LVMH and Richemont among the leading gainers after the China stimulus report. Treasury yields were little changed, diverging from higher rates in Europe and the UK. Oil and bitcoin both gained more than 1%, while gold was little changed after three days of gains.”
VIX futures hit a morning low at 15.07, marking a potential Master Cycle low on day 266. Intermediate Wave (E) has become more complex than expected, but no rules were violated.