As I anticipated, the market moved higher at the open, surpassing my target of 1356. After a gap open, the market continued past the 1357-1358 resistance level, and rose to 1361.51. That level did not hold, however, and the SPX dipped to 1351.48. After that the rally continued, with the market first reaching 1359.10, and then to a new intra-day high at 1363.13. From there, the market moved slightly lower into the close.
The move today continued the rally from Tuesday’s 1329.24 low, in what I consider to be wave 3 of 5 from 1267. This wave should terminate at, or near, 1395-1397.
Short term support is at 1357-1358, 1323-1326, and 1313-1315. Resistance is at 1367, and then 1387-1397.
Very short term, it appears the market is forming a complex wave structure from the 1329 low. I look for a move higher on Friday, with a target of 1366-1367, followed by a pullback to perhaps 1359. This should set the market up for a move to my 1393 wave 3 target.
Now that your 1393 projection came true (1389 today which is close), what levels do you see for a pull back? I'm basically a trapped short asking. Thanks.
ReplyDeleteHi n,
DeleteYou can find a more detailed answer in my update. It would be possible that tis correction could head back down near 1330, but most likely it should hold above 1368.
Thanks,
Steve