The market fell slightly to the downside near the open, and then continued the late afternoon rally from yesterday, moving up to 1343.98. This completed a 5 wave sequence from the 1329.24 low, and from there the market moved pretty quickly to the downside. By late morning the SPX hit 1331.50, and then attempted another rally. That rally fell just short of the morning’s high, from which point the market fell back to 1335.87 before rising slightly into the close.
As I mentioned above, the market completed a 5 wave sequence at 1343.98. One of the support lines generated by the sub-waves of that sequence was at 1331.2. The subsequent drop from 1343.98 ended at 1331.50. This completed a 5 wave sequence, as did the move higher from that point to 1343.77. Another support line generated by the move from 1329 to 1344 sits at 1336.2, with the move down from 1343.77 terminating at 1335.87. This also completed a 5 wave sequence.
It still appears that the market put in wave 4 of 3 from 1267 at 1329.24. The target for wave 5 remains around 1395. If the market moves below 1329, it seems most likely that the market completed a 5 wave sequence from 1267 at 1380.39.
Today’s late afternoon low of 1335.87 appears to be the completion of a 5 wave sequence. If the 1329.24 low was wave 4 of 3, the market should move higher from this point, with a near term target of 1346, or 1356. Resistance is at 1338, 1341, and 1356.
If the market moves lower, there is a cluster of support from this level, to 1331, which marks the lowest support level generated by the wave from 1329 to 1344. If the market breaks below that, support is at 1323-1326, and 1313-1315. In my mind a fall below 1329.24 low probably means a 5 wave sequence from 1267 has been completed.
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