The Stock Market created another very interesting day. Within the first half hour it took out the 1374.76 short term high, indication another 5 wave up sequence was in the works, and the previous longer term high of 1378.04. As we discussed, breaking the 1374 level made it apparent we would take out the 1378 high. From there the market continued to gain strength, hitting 1384.75 before taking a short breather. After pulling back to 1381.23, the market charged ahead once again, first to 1393.41, and then a final push propelled the market to 1396.13. Having pulled back from that level only slightly, the market closed at 1395.95.
We revised the count for the correction from the 1374.76 high. It now appears the termination of that correction was 1366.69. With the market movement today, that would appear to be Wave 2 from the 1340 low. The next termination point at the moment would be in the 1397.27 – 1401.54 range. That would complete Wave 3 of the current move. From there a small pullback would set this up sequence to finish near 1420. That would complete Waves 4 and 5, of the current sequence, and Wave 4 on the daily chart. This scenario would keep us in our forecast range of 1394.91 – 1422.88 for the top from March 2009. Wave 5 would be down, with one final run higher to complete that top.
On a cautious note, the market now sits just above a range that would have completed a 5 wave sequence from the 1340 low, completing Wave 4. If the market falls below 1391 before reaching our 1397-1401 range it would most likely validate that count.
No comments:
Post a Comment