The market opened slightly lower this morning, but quickly turned higher, making a new short term high at 1366. This completed wave 5 from last Thursday’s 1313 low. After making that new high, the market turned lower, dropping to the 1356-1357 support. After bouncing around that support, the market put together a small rally towards the close, getting back to 1365.
The move up this morning was a continuation of wave 5 from Friday, still staying within the model range. The drop back to 1356 may turn out to be the extent of the corrective wave, or become wave 1 of a further correction. From 1356, the market completed a 5 wave sequence back to 1365.
The market should pull back tomorrow, having completed a 5 wave sequence. If the market breaks through 1356, a further pullback would be expected. Support remains at 1326-1323, and then 1315-1313. If the market holds 1356, 1356-1365 would become wave 1 of a 5 wave sequence higher. Projections for wave 3 of that sequence would be first 1368, and then 1374-1382. If wave 3 terminates at 1368, wave 5 should occur only slightly higher. The market would then seem to be setting up for a further drop, possibly forming a semi-inverted corrective wave from the 1366 high. If wave 3 carries to 1374-1382, the market could be headed much higher.
I see 1365 as the termination point of wave 3 from 1306.62. The market would now be in wave 4, or wave 5 from that point. My target for wave 5 is either 1393, or 1475-1480, depending on how this plays out. Either of these scenarios would require the market to still correct further from 1365. If it does not, the wave structure may be slightly different than I currently have, but the targets would remain the same.
HEy Steve, Thank you for this analysis. Does today's action put us into the category of "going much higher" as you indicated above? Where do you see the end of Wave 3 reaching at this point? Thanks in Advance!
ReplyDeleteHi Kenobe.
DeleteI think it does. Short term I'm looking at 1391. From there, my targets are still either 1426, or 1497. A lot depends on what happens after we hit 1391.
Thanks,
Steve
Hi , I'm new to writing to you both , Enjoy reading your work Steven , BUT its not true elliott wave structuring which I use because it shows the ending points and begining points exactly , 1393 is a stopping point of a wave 2 up of a 3rd wave down so we go down from S&P 1393 . A Major CRASH So use CAUTION OR JUST SHORT LIKE CRAZY .
ReplyDeleteHerb
Is there someplace you can direct me to for understanding how you place in the 5 count ?