The market started the day moving slightly lower from Friday’s close, dropping below 1415, before rebounding to 1417. The selling continued after that bringing the market down to 1412. The market tried to move higher through the rest of the morning, and into the early afternoon. After making it back up to 1417, the market fell back once again to 1415. The market then rallied to 1418, before falling once again to 1416. The market again tried to rally into the close, making it back to 1418.
Today’s drop from Friday’s late afternoon high of 1418.71, to 1412.12, unfolded in a 5 wave sequence. From that low, it appears the market began a 5 wave sequence to the upside, with wave 1 terminating at 1413.31. Wave 2 played out as an inverted corrective wave, which terminated at 1414.73. It appears the market then completed waves 3, and 4 of that sequence. Wave 5 of this sequence should terminate at 1420-1421.
It now looks like Friday afternoon’s 1418.71 high completed a 5 wave sequence from 1395. This morning we saw a 5 wave corrective sequence, and we should now be ready to move higher. As I mentioned above, the market should complete a sequence at 1421-1421, with my next target at 1430-1441.
Near term support should be at 1411, 1407, and 1402.
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