Yesterday I said I would be looking for a higher opening, to 1366-1367, a pullback to perhaps 1359, and then on towards 1393. The market did open higher, reaching 1367.85 at the open, and then continuing on to 1368.86 before experiencing a minor pullback. After that, it was almost straight up the rest of the day. By midday, the market had risen to 1377.41, and then spiked up to 1388. After a small pullback, the market reached the day’s high at 1389.19, and then dipped to 1384.49 before the close. This was within the cluster of resistance at 1387-1397 that I spoke of yesterday.
The market has been forming a nested wave sequence from the 1329.24 wave 4 low, and that sequence completed today at 1377.41.Then, with that being a wave 1 from 1329, the market completed another 5 wave sequence at 1389.19.
I have been targeting 1393 as the termination point of wave 3 from 1267. Today the market moved within our target range for that termination point. 1389 completed a 5 wave sequence from 1329, and is within my model’s range for wave 5 from 1309, and wave 3 from 1267. It is possible that the market may work slightly higher, creating smaller and smaller waves, but I think this is the end of the sequence.
If this is the end of wave 5, there are three scenarios. My targets for wave 5 from 1267 have been either 1426, or 1497. If the corrective wave 4 terminates between current levels, and about 1368, 1497 would be my target. If the correction carries further, to between 1350, and 1330, 1426 would be the likely target. There is also the possibility that this was the end of wave 5 from 1267.
I will address this in more detail over the weekend.
No comments:
Post a Comment