Weekly Market Outlook: Bullish Long-Term, But Caution Ahead - What You Need to Know

A relatively quiet week that we are entering, at least from an economic standpoint, we have no major announcements set to be made. From a sentiment standpoint we have broken the stalemate between bulls and bears and reentered bullish territory but only slightly. Although the market took a pause in the short term lets remember why we are in an overall very strong bull market trend and should be for quite some time.

We have a lot more earning in the coming weeks but the above image proves that future earnings continue to rise and the strong get stronger. These are just more signs of where we are in the cycle with the biggest companies on earth not only beating earnings but doing so by a wide margin. Another data point I want to share is to remind you again, that you have to respect the trend. An outperforming market doesn’t mean it has to crash, in fact it means that its more likely to continue outperforming in the coming weeks, months, and years.

As you know I’m not a fan of data as I’m simply using it here to support my argument much like any bear or bull does. We always respect time and the rules of the market and the core rule we have is to go with the trend. So while I am using this to back up my outlook, I also want to show you that the numbers don’t lie and the trend is your friend. Short term noise will mostly be just that for the foreseeable future.

As for where we are this week, I was quite public last week about the possibility for a major low in the crypto market given our Gann analysis.

The late April/early May window was actually given to subscribers at the beginning of the year. I also gave subscribers the stock market low the week before that. However, I believe the coming two to three weeks and months will be a disappointment for people who don’t follow our work this summer and into the end of the year.

This is the last month we are offering our yearly $280 premium subscription before the price increases on June 8th. That includes EXACT dates to watch for major highs and lows (we have hit every one). What to expect each week in the market, and how to position yourself (i.e. risk on risk off signals). Plus specific alt coins to watch from small caps with 100x potential to 1000x meme coins.

Now let’s cover what we can expect for this week’s price action in stocks and crypto.

S&P 500

Starting with the weekly chart here. We can see that the weekly candle was very strong last week and closed above the .5 retracement level regaining a strong position after the sell off. On the daily lets look below

Also closed above the .5 level with a series of higher highs and higher lows. So far so good. However, this week we are entering a natural date that I have told you about, May 6. So we are going to want to be a bit cautious here of a turning point coming soon. If we look back to our 60 year cycle we can see that the market turned on May 12 and then went on to make a LOWER LOW in early June.

Now, I’m no fool, I know we are not going to exactly follow the 60 year cycle, that would be too easy. BUT, we have been pretty damn close so far, so why mess with it if it isn’t broken? The 60 year cycle turned down on the 12 as indicated by the lines and made a low on June 9. This also goes hand in hand with 70 years of election cycle data suggesting the best buying opportunity of an election year comes in late May/Early June. So although the market is indicating strength in the recent days I am still cautious of bull trap here and the end of the month presents the real buying opportunity. Be on the look out for divergences toward the end of this week.

As for Cryptos

This is quite a powerful weekly chart just looking at it. Look at the wicks on the downside the last 7 weeks. Intense buying pressure on every dip. Last week we got a great setup for a major low with the weekly closing green as we had predicted. However, given the setup in stocks I think it is highly unlikely the bulls get the rocket ship move any time soon. This market has moved into a prolonged consolidation phase that I will cover on Wednesday. I also have my eyes set on our NEXT major date so stay tuned for that.

In the short term this market is actually still WEAK. I hate putting the fib lines on my chart because it already looks insane but I want to show you we are still trying to reclaim the .5 retreacement level. Until we can get above that and turn it into support, the short term is weak. I also told you about the 6th as a natural date but here my analysis is showing a change in trend the 8th and 9th. Remember we can be a day or two on either side. But given that we are below the .5 level and have yet to make a higher high I expect another pull back going into mid May. Watch for it to start here at the second half of the week.

We then have another possible trend change around the 12th. I know it seems like every other day but I expect these to be more minor in detail. The weekly gave us a major trend change setting up the low. But when we zoom in I would not be surprised if we struggle to get going for another week or two. We may make a reversal here around the 9th then make a higher low in the middle of the month. To me that would signal all out risk on and I’ll get to that in a minute. So, the major low was last week but in the short term we can struggle for a few more weeks as bulls get overly excited.

ALTS

Here are the weekly charts for TOTAL 1, 2, and 3. All I can say is EXTREMELY BULLISH. Look at the wicks on the bottom for the last 4 weeks. Huge demand. Buyers aggressively stepping in for several weeks in a row. So, if we get that pull back into the middle of the month it will be full risk on mode. As we have been positioning in low caps and bottomed out alts for the last few weeks you should be in a good position. If you are not you will likely get one more shot to add into the end of May.