Sentiment Speaks: Market Has More Surprises To Come

As I have been traveling with my family over these last several weeks, I still have had the opportunity to peruse the many bearish articles being published and have enjoyed quite a few chuckles. As the market continues to make new all-time highs, it really amazes me how so many are still fighting this rally.

Over the last week alone we have seen titles including:

"Inflated Expectations Set For Disappointment"

"How To Navigate A Potential Market Crash"

"Ringing The Bell At The Top"

"Don't Get Too Comfortable: The Third Wave Is Coming"

It seems that there are many bricks being added to the wall of worry, as the market continues to climb higher.

What astounded me most was reading an article that claimed that Covid was going to crash our market again. It seems that there are still many that are unburdened by the facts. I will not re-argue my perspective on this, but if you have not learned that the market can continue to rally in the face of Covid - or any bad news for that matter, then you have not been paying attention over the last year and a half.

Moreover, the inflation boogieman is still running amuck, as the debate continues. Two weeks ago, the Biden administration has told us that our July 4th BBQs are costing us 16 cents less than they did last year. So, I don't know about you, but, to me, that certainly does not mean we have inflation today. Of course, that is assuming you believe everything the government tells you.

Yet, there are still many inflation theorists that are calling the bond market, gold market, and US Dollar market "baloney," "crazy," "weird," and many other names, as they are going in the exact opposite direction one would expect during inflation. Admittedly, their grasp of what is going on in the market is quite lacking, as confusion seems to reign supreme among these "experts." But, if your analysis is resigned to calling the market names, then I want to remind you of what Socrates noted:

When the debate is lost Slander becomes the tool of the Loser.

So, as the market continues to rally towards our long-term target over the coming years, I am quite certain we will continue to see more and more articles that are completely disconnected from the reality presented by price, as continued predictions of market turmoil persist. So, I fully expect to see articles such as these in the coming years as the market continues to rally in opposition to most of these "expert" perspectives:

"When Interest Rates Will Become A Problem For The Stock Market - Part 32"

"Inflation Will Eventually Kill Our Stock Market - Part 38"

"The Fed Has Lost Control - Part 42"

This past week, I outlined to the members of ElliottWaveTrader that as long as we hold the 4287SPX support level, the market will continue to rally. And, on Thursday, the market struck a low of 4289SPX, and then struck a new all-time high only one day later. Yes, my friends, this is a bull market, and it will continue to reach much higher levels over the coming two years.

For now, I will reiterate that I expect another buying opportunity in the stock market before we begin the next major rally over 4600SPX, potentially carrying us to 4900/5000SPX within the next 6 months. Therefore, I am still looking for a 200-300 point pullback over the coming months. But, as long as the market continues to hold the support levels we cite, that pullback may not begin until we reach the 4600SPX region. For now, that support is 4287-4300SPX, as we have raised it from my last publicly published article. And, we will continue to raise it as the market continues to subdivide higher.

The only question I have at this time is if the market will begin that 200-300 point pullback below 4440SPX, or if we can continue on towards 4600SPX before that pullback begins. The next two weeks of trading will provide us with that answer. As long as we hold the 4287-4300SPX support in the coming week or so, we will then attack the 4440-4490SPX region next, where we will again raise our support.

So, while you may continue to be swayed by the many bricks being added to the wall of worry, you may want to ask yourself if those bricks have helped you profitably climb that wall or have caused you to stumble!?