I will be posting a more thorough update soon, but wanted to give a quick update now.
Given today’s action, the alternate count we discussed yesterday appears to be what played out. 1328 was indeed the completion of a 5 wave sequence from 1347, and in turn wave 1 of a larger degree sequence. The wave 2 rally from 1328 ended up being longer than we accounted for yesterday, but from the termination point of wave 2, the rest played out pretty much as we suggested.
The market turned lower from there, and at 1326 completed wave 3, taking out the 1328 low. After a bounce back to 1331, the SPX fell below the 1326 low, down to 1324.79. This puts the Index within our wave 5 target range from 1415, but still slightly above our target of 1319 from 1374. The current 5 wave sequence from 1347 would also have a slightly lower target.
A triangular shape seems to be forming from 1342 wave 2 high, with a drop near the lower trend line completing both the 1374, and 1347 5 wave sequences.
While ideally we would still like to see 1319 to resolve all the wave structures, what we would like doesn’t always happen. With the minimum target level for the move from 1415 having been met, it is time to start considering a bottom. From this point, a move above 1331 would most likely signal the bottom, and a move above 1347 definitely.
No comments:
Post a Comment