With the market completing a 5 wave sequence from 1392 to 1355 yesterday, it appeared the correction was from that point was over, and that was confirmed at this morning’s opening. The market surged to 1385 in the opening minutes, and then continued higher, peaking above the previous 1392 uptrend high at 1394. From that point the market worked its way slightly lower, dipping below 1389, before recovering into the close.
With the confirmation of 1355 as the end of a corrective wave, it would be easy to say that the market is now headed to my next target of 1426, or 1497. However, nothing about this market over the past couple of months has been easy, or obvious. The market has continually done the opposite of what seems apparent. When the market peaked at 1392, I said the depth of this correction would determine the next target level. A correction that terminated above 1368 would point towards the 1497 target, while a move to 1350-1330 would target the 1426 level. The correction ended at 1355, which once again leaves the target somewhat in flux. The target using that 1355 bottom would be between 1435, and 1475. While a top somewhere between these levels would land within the margin of error for either1426, or 1497, it is also possible that something else is going on. It almost seems as if the market has not yet made up its mind on where it wants to go, and is perhaps buying time before making that decision.
The level at which today’s move ended is also interesting, coming as it did between the 1387-1397 resistance level. With the wave structure as it is, there is a possibility for a pullback ending above 1378, and then a high slightly above today’s high of 1394. This would complete another 5 wave sequence from the 1329 low, which then would be wave 3 from 1267. This would still terminate within my target for that wave, and would allow the market to then make a decision on the next move. That would be determined by the depth of the correction.
If the market can clear this 1387-1397 resistance zone, the market would most likely be in wave 5 from 1267. I will discuss this in more detail over the weekend.
your 60 minute chart labels are an entire joke, how the heck you count 5 waves on what is nothing more than ABC overlaps with sloppy gaps is beyond me.
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