The market opened sharply lower today, continuing
the slide from yesterday afternoon’s 1465 high. The market first fell to 1453
and after a slight bounce to 1455, dropped to 1450. From that point the market
started to rally, rising to 1458.77 by midday. This was followed by a pullback
to 1455, and the another rally to 1461.23. The market then dipped near the
close, hitting 1458.58, and then rose into the close.
Yesterday I said the rise from 1456 to 1465
appeared to be 3 waves of a 5 wave sequence. This, in fact, turned out to be
the completion of a 5 wave sequence. The drop this morning then completed a 5
wave sequence from 1465. I also said that should the market fall below 1456,
support should come in near 1450. On this count I was right, as the market fell
to 1449.98, and then rallied the rest of the day.
On the 15 Minute chart, I have labeled today’s
1449.98 low as the completion of the 5 wave inverted corrective wave 2 from
1438.74 that I have been alluding to lately. If this count is correct, the
market should now resume the rally from 1266.74. My next target is 1497. If the
market drops below 1450 at this point, the next support level would be 1426.
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