Although the market action today was not exactly
as forecast, it does appear that 1538.57 will prove to be the low of this
corrective phase, and the market is now poised to continue higher. There is a chance that this market has not bottomed, and if this is the
case it will move substantially lower, possibly to 1520. The more likely
scenario is that the market completed an inverted corrective wave from the 10/05/12
1470.96 high yesterday at 1358.57. That should complete Wave 2 from the 1266.74
low, with Waves 3, 4, and 5 pushing the SPX higher.
The market opened higher this morning as expected,
but the magnitude of the rise was larger than anticipated. When the market moved
above 1557, it became clear that the scenario I alluded to yesterday would not
play out. It now looks like the SPX completed a 5 wave sequence from the
1538.57 low yesterday at 1550.46. The market then formed an inverted corrective
Wave 2 from that point, which catapulted the SPX to 1559 within the first
fifteen minutes of trading. Wave 2 completed at 1555.23, with the market then
tracing out the remaining waves, and completing a 5 Wave sequence near the
close at 1561.56.
I had been anticipating the corrective sequence
from 1563.62 to complete an inverted corrective wave from 1470.96, but my
interpretation was that 4 waves had completed, with only Wave 5 left. This
interpretation would require a 5 wave sequence from 1563.62. As of yesterday I
counted 3 waves completed, and anticipated a move up for Wave 4 and one final
move down for Wave 5, which would have completed the sequence.
It now appears that 1563.62 marked the end of Wave
2 of the inverted corrective sequence from 1470.96, and the 3 waves from that
high were waves 3, 4, and 5. With the corrective sequence now complete, the
market should be ready to move higher.
Hi Steven ~ glad that you came back. Had been constantly reading your posts.
ReplyDeleteOn the 3 min chart above, today's low could be the completion of the 4th unless. But if it fails near 1550 (?) then maybe we'll get to see 1520's first before your 1600 top forecast.
Would you mind what indicators you're using for your timing model? Been wondering when this 4th down will get completed so I can ride with the 5th up.
Thanks.
Yen