Although we were correct in saying a move above 1355 would mean a continuation of the uptrend from the 1340 low, we believe we misread the wave structure. It now appears the move from 1354 to 1354, was a 5 wave sequence in itself. That makes 1354.84 the top of Wave 3, and Wednesday’s close of 1352.63 the end of Wave 4.
With that in mind, today’s strong move to the upside then was no surprise. The market opened strong, and barely looked back the rest of the day. It also managed to complete a near perfect 5 wave sequence from the 1352.63 low to today’s high of 1368.72. The termination points for the sequence are 1363.04, 1358.12, 1365.79, 1363.62, and 1368.72. This also then completes a 5 wave sequence from 1340.03. This means the next move could be to the downside.
The level to watch now is the 1368.72 high. Since we have completed a 5 wave sequence from the low, a move above that would require the completion of another 5 wave sequence.
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