Tuesday, March 26, 2013

Tuesday's Market 03/26/2013


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.
 
 
 
 
 

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