Although the market enjoyed a strong move higher
today, nothing in that move changed my current view of the wave count I have
been talking about since this weekend. That count has Wave 1 from 666.79
terminating at 1370.58. Wave 2 turned out to be a rather lengthy inverted
corrective wave that eventually ended last Tuesday at 1538.57. From there I
have Waves 3, 4, and 5 terminating at 1561.56, 1543.55, and 1564.91
respectively.
The market jumped this morning above 1558 in the
opening minutes of trading. The action became a bit choppier from that point,
with the SPX hitting 1561.59 before pulling back. That pullback took the market
to 1556.45. The market then traded within that range over the next several
hours before hitting a new high for the day. The SPX eventually made it to
1563.95, and closed just off that high.
This entire move was the completion of a single 5
Wave sequence from yesterday’s 1546.22 low. Wave 1 ended yesterday at 1555.59,
with Wave 2 an inverted corrective wave that completed today at 1556.45. Wave 2
of this wave was also an inverted corrective wave, of which this morning’s
spike higher was the main feature. Waves 3, 4, and 5 then completed, with Wave
5 carrying the market to 1560.77. This then became Wave 1 of a higher degree
wave. Wave 2 was again an inverted corrective wave, and Wave 5 completed at
1562.95.
With a 5 Wave sequence from 1546.22 now completed,
and the market still below yesterday’s high, now would be the time for the
market to move lower. I am still looking for a move below 1545.90 to confirm
1564.91 as the completion of Wave 5 from 666.79.
There are several alternatives for the market. If
the market manages to make a slightly higher high, it would complete a 5 Wave
sequence from 1538.83 Wave 2 low. This would imply that only Wave 3 has
completed. A pullback for Wave 4 would be expected, and then at least one more
move higher for Wave 5.
If the market breaks through the 1565.5, it would
mean that Wave 3 still has further to go. This would then be followed by Waves
4, and 5.
Thank you. Your interest, support, and comments
are much appreciated.
No comments:
Post a Comment