It was another very interesting day for the market. It opened sharply lower, moving below the 1326-1323 support level, and then bouncing back into that zone. The support did not hold, as the market continued down, hitting the 1315 support. After another small bounce, the market hit the low of the day at the 1313 support level. At that point, things got really interesting. The market moved sharply higher, gaining back almost all of the earlier losses.
The short term counts are still a little confusing. At the moment it appears the SPX completed a 5 wave sequence from 1309 at 1320. After a small corrective wave, the market completed another 5 wave sequence of one smaller degree at 1334. Today’s drop was wave 2 of that sequence, with wave 3 currently underway.
Short term resistance should be at 1340-1345, 1350, and 1372. Support remains at 1326-1323, and the 1315-1313.
Longer term, my best count from 1267 remains wave 3 of 3, with a target of 1393.
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