On Friday the market completed a 5 wave sequence from the 1388 high. We are looking for a slightly higher opening for Monday, perhaps to the 1373 level. From there we would expect the market to move lower, below the 1369.85 low, and start a new sequence.
This sequence should see the SPX move down to 1358, rebound a point or two, and then continue down to 1348. This would fit nicely with the projection from the 1422, which calls for a move to 1343, followed by a rise to 1355, and a final low around 1330.
We do not see the move higher on Monday to be a tradable rally, but rather a point to take advantage of another move lower.
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