It was another seemingly lackluster day of trading. After rising yesterday from the 1400.60 wave 5 low, the market pulled back at the open today, falling to 1402. Then, what has passed for a rally the last several days ensued, carrying the market above 1406. The market then pulled back to 1403, before rising in choppy fashion back to 1406. Another pullback to 1404 was followed by another move higher to near 1408. From there the market moved lower once again to 1405 near the close.
This was another day spent in the narrow trading range the market has been in for almost two weeks since the move off the 1354.65 low. Although it has been a narrow range, it still appears to be forming in a bullish fashion. It still looks like 1391.74 was the wave 3 high from 1267. A complex corrective wave 4 followed, which ended at 1395.62. The wave structure from there is still incomplete, and could take several forms, but what I see right now has waves 1-4 completing at 1395.62-1405.98-1397.32-1410.03-1400.60. Today I believe we saw waves 1 and 2 of wave 5 from 1395.62. This should terminate near 1418-1420. This should be wave 1 of the sequence that may take the market to 1497.
I would look for the market to continue higher. The market should move to 1412, and after a very slight pullback, it should continue on to 1420. I continue to look at 1395.62 as the level that would put this scenario in jeopardy. If that level fails, the market could continue down to 1380.
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