I was looking for a move up from yesterday’s close, but the market started to the downside today, dropping to 1396.13 near the open. The market rallied from there, turning positive for the day, and moving up to 1404.14. That was as high as the market could get, turning lower after that, and pulling back to 1399.86. Another rally towards the close brought the market back near 1403, before fading slightly into the close.
The drop to 1396 at the open stayed within the parameters of the 5 wave sequence from Tuesday’s 1407 high, although it was slightly more than I had anticipated. This probably discounted the scenario I laid out yesterday, and bringing back into play the count I outlined on Monday. This results in a 5 wave sequence being completed from 1354.65 at 1407.14. A 5 wave sequence then completed at 1396.13, and possibly 4 waves of a sequence completing to the upside today. The target for this wave 5 is around 1405, below the uptrend high of 1407. A move above that would signal a resumption of the uptrend, with resistance at 1426.
It is possible that the market will move lower, below today’s 1396 low. This would most likely carry back down between 1390, and 1370. If the market does fall between those levels, one more move to the upside would still be required. The target for that would be 1426, or above, which puts us right back at the original 1426 target.
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