In yesterday’s post I said I would be looking for
a continuation of the rally off the 1536.03 low, with a target of 1561. After
an opening dip to 1539.40, the market moved higher, topping at 1555.89.
From the opening dip, the market turned higher,
reaching 1547.68, and then falling back to 1541.91. Another move to the upside carried
the SPX to 1549.63, but was followed by a quick move back to 1545.86. After
that the market was able to sustain a longer rally to 1554.87. The market
followed that by giving back half of that gain, before rising into the close,
and hitting a high of 1555.89.
The rally from the 1536.03 low, to yesterday
afternoon’s 1544.01 high, completed a 5 Wave sequence. 1544.01 then became Wave
1 of a larger degree sequence that was completed at 1549.63, at the end of the
choppy trading that marked the start of the session. The subsequent drop to
1545.86 formed Wave 2, and was followed by the more sustained rally into the
midday hour, which completed Wave 3. The market then pulled back to 1549.48,
and completed Wave 4. Wave 5 then completed near the close of trading at
1555.89.
I had been expecting a move to 1561 off Thursday’s
low, and the market fell short of that mark today. With a 5 Wave sequence now
completed off the 1536.03 low, it is likely that this upside move is over, and
that the market will resume its move to the downside. If 1555.89 was the high
of this move, it would lower my targets for the downside move to between 1495,
and 1448.
I will elaborate on this over the weekend.
Thank you.
No comments:
Post a Comment