Sunday, April 29, 2012

Friday's Market

On Friday, the market opened higher, and quickly rose to 1405. That rise was followed by a sell-off, pushing the market down to 1397. We believe this was the termination of a semi-inverted corrective wave from Thursday’s 1402 high. After falling to 1397, the market recovered, steadily rising to 1403, falling back a point, and then resuming the move higher to 1407. The market faded once again into the close, falling to 1402.43.

Friday’s action continued the rise from the 1385 low, completing wave 4, and waves 1, 2, 3, and 4 of 5 from that point. We think the market can make one more move slightly higher, to 1308-1311, before completing wave 5 of 5. That should complete the 5 wave sequence from 1357, and perhaps resuming the move from 1422.

We still believe we can move lower, continuing to target the low 1300 level from the 1422 high. Should we move above 1422, we think the market could move higher, with our target the 1460 level.

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