Friday, June 15, 2012

Friday's Market 06/15/12

In yesterday’s post, I said to look for a high between 1343, and 1344, followed by a small correction, and then a move to 1354. This would complete 5 waves from the 1310 low, and wave 3 from 1306.

The market opened higher today, reaching 1335 in the first few minutes of trading. After that, the market moved steadily higher, with only a couple of slight pullbacks along the way. After a pullback from 1335, the market made it to 1337, and then 1338. Here the market saw the biggest correction of the day, slightly less than four points. The market then moved back up to 1338, then 1340, and then, just before the close, it reached 1343.32. The SPX closed just off the high of the day, and that may prove to be important.

The SPX completed wave 3 from 1310 today at 1343.32. Wave 4 may turn out to be the very small pullback from that high. From there I had projected a wave 5 high at 1354. This is the lower end of the range for one relationship I was looking at for my projection. Now that wave 3 has completed, the picture has gotten a little clearer. It now looks like wave 5 could reach 1367, or slightly higher.

There is still room for the market to pullback further from the 1343 high. If the market drops below 1321, this scenario would be nullified.
I will post a further update over the weekend.
Thank you for your interest.



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