The market moved sharply lower at the outset today, dropping to 1397 in the opening minutes, and continuing the fall from yesterday’s 1415 high. Here the market found some support, and rallied slightly back to 1399. This bounce was short-lived however, and the SPX soon resumed its decline, falling to 1393.92. This wiped out the entire advance from yesterday, right at the 1394 level we suggested. With the 5 wave sequence from 1415 completed, the market could now move higher.
The SPX first advanced to 1400, dropped to 1398, then moved to 1402. After falling back to 1399, the market staged one final move to higher ground, where it reached 1403.39.This completed the sequence, again hitting the level we pointed to yesterday as the corrective limit from 1394.
There is a possibility that 1403 was only wave 1 of an advance from 1394. If this turns out to be the case, wave 5 is only projected to terminate slightly above the 1403 level, and still within our projection from 1394.
At this point, look for a move below 1399 to confirm the 1403-1404 sequence high. A move below 1394 from there would signal a further move down, with 1385 a likely stopping point. Should the market move above 1403-1404 from current levels, we would look for higher prices, and a possible new high.
We still believe the bias of this market is to the downside, and still expect a break of the 1357 low.
No comments:
Post a Comment