The market opened lower today, gapping down, and continuing until it reached 1334.46. That proved to be the low of the day, with the market quickly rallying above Friday’s close, to 1346.59. Another decline ensued, but kept the SPX above 1334. The market rallied again, reaching new highs, and topping at 1348.22. Another decline into the close followed, dropping the market to 1343. After that the market rose slightly just before the close.
The market action today seemed somewhat positive, but has left open several possible courses for the market. Sticking with our current count, the market formed five sequences from Friday’s 1343 high. This appears to be an inverted corrective wave 4, which terminated at 1343.64. If this is correct, the market should move higher from here, with our short term target remaining at 1367.
A second possibility that appeared today is another 5 wave sequence from 1321 being completed. In this scenario 1343, 1347, and 1348 are waves 1, 3, and 5 respectively. This would likely mean a further correction is forthcoming, with a move near 1330 a possibility. If the market moves below 1343 before making a new high, this would be the most likely scenario. From that low, the market could then move higher. I’ll address this in more detail should this scenario materialize.
A third possibility is the entire move from 1327, to this morning’s 1340 low being part of an inverted corrective wave 2. Today’s high of 1348 would be wave 3 in this case. A move to 1350 would then complete a 5 wave sequence from 1306.62, with a high probability of a further correction.
In the near term, if the market can hold 1343, and move above 1350, the next stop should be 1367. A move up to 1350, and then a break of 1343, would mean a further correction. If the market opens to the downside, it should move back up to 1350.
Thank you for your interest.
No comments:
Post a Comment