Monday, September 17, 2012

Monday's Market 09/17/12


After reaching a new uptrend high of 1474.51 on Friday, the market pulled back, completing a 5 wave sequence to the downside at 1461.54. After moving higher into the close on Friday, the market continued to consolidate its gains at today’s open, dropping back to 1462. The market then spent the rest of the morning, and early afternoon, trading in a very narrow range. In the last several hours of trading, the market broke through that trading range to the downside, first moving to 1459, and then after a slight bounce, down to 1457.55. Once again, the market moved slightly higher into the close.
 
The market completed another 5 wave sequence from 1474.51 at 1457.55, meaning the rally could continue from this point. If the market can move above 1461.62, I would expect the market to continue higher, with my target remaining at 1497. The market could still consolidate further, but if it moves lower, I would expect only slightly lower lows from this point.
 
Longer term, I see this as wave 5 from 667, with my target at the moment being above 1560. Wave 4 from 667 terminated at 1267. The market completed wave 1 of 5 at 1438.74, with the market in the process of completing what appears to be an inverted corrective wave 2.
 
 
 
 

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