After having reached a new uptrend high of 1474.51
the previous Friday, the market started off the week by continuing to
consolidate those gains. Monday proved to be a down day for the market, with
the market falling to 1456.13. After hitting this point, the market tried to
rally over the next several days, but that rally was somewhat subdued, with the
market making it back only to 1465.15, before turning lower once again. The
market then dropped sharply at Thursday’s open, falling to 1449.98. The market
staged a more robust rally from there, rising to 1461 on Thursday, and then
opening strongly to the upside on Friday, hitting 1467.07 before falling back.
By the end of the day Friday, the SPX had given up its earlier gains, dropping
back to 1459.51 near the close.
My current count had the high of 1438.74 that
occurred on September 10th as the completion of a 5 wave sequence
from the 1267 low. From that high, the market has now completed an inverted
corrective wave 2, which ended at Thursday’s low of 1449.98. This sequence took
the form 1438.74-1428.98-1274.51-1456.13-1466.76-1459.51. If this count proves
to be correct, I would expect a resumption of the uptrend. My target for the
next move higher remains 1497.
Short term support is 1455-1452 if the market
moves lower; with a move below 1449.98 most likely meaning my count is wrong.
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