Revisiting $M, New Target

My last discussion on $M was here. In that post, I called for a significant rally, and we got it. It rallied over 50% from the time of that post to—and even through—the target range I had called for.

Since then, we can see that that rally produced a third distinct peak from the COVID crash low. That makes the rally an excellent candidate for an impulse wave. And since then, it has pulled back in exactly 3-waves so far. And in doing so, it has found support precisely at the 61.8% retracement of that advance from the COVID crash low, almost to the penny.

This whole structure gives us the appearance of a picture-perfect, textbook “1-2.” The target range for “3” is the orange box above us.

M

I know that I have frustrated a lot of folks by having a bullish bias. The correction we have endured has been long and difficult. But, there are simply too many examples of structures such as this for me to not have a strong bullish bias, especially for the long-term. I will want to see structures like this fail in order to entertain much bearishness because if this (and other examples) are one-twos, we have a very long and drawn out rally coming ahead of us.


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