After completing a 5 wave sequence from 1374.81 on Friday, I was looking for a move higher today. Instead the market moved lower, moving just below Friday’s low of 1348.03. That low turned out to be wave 1 of another sequence lower, which played out today.
The market opened lower, and continued down through the morning. The first low came at 1347.44, and after a rally to 1352, the market out in a slightly lower low at 1346.65. This completed the 5 wave sequence, and the market rallied from that point. It rose to 1353, before falling back towards the previous low, but held at 1347.67. The market then rallied into the close, rising above 1353, before fading into the close.
As I stated above, the action today appears to be the completion of a sequence from the 1375 high. While it is possible for the market to form another sequence from that high, I feel this would only result in slightly lower lows. It does not appear that a 5 wave sequence has completed from today’s low, so I still think the market is headed higher.
Near term I have targets of 1356, or 1368. The 1356 target would be near the 1357-1358 resistance level. This would be wave 3 from today’s low, with another move higher expected after that. If the market moves much below today’s 1346.65 low, the market could be in the midst of a more prolonged corrective wave.
In summary, I am looking for a move higher, with an initial target of 1356, or 1368. This should signal a resumption of the uptrend from 1267. If the market falls below 1346 by a couple of points, this correction could be headed down to 1323-1323, or even 1313-1315.
No comments:
Post a Comment