WOW! What a day for the market. As anticipated,
the slight pullback into the close yesterday, proved to be the low. The market
started strong, and remained strong throughout the day.
Another gap to the upside took the market to
1576.10 at the open, followed by a two point pullback. That was only the
beginning, as the market continued higher, and higher, until it reached
1586.39. This move higher was only interrupted by a couple of small pullbacks.
One more pullback set the stage for the final push of the day, which brought
the SPX to 1588.85. From there the market saw its most substantial drop of the
day, plummeting nearly three and a half points to 1585.33. The market recovered
at that point and rose nearly to its previous high before the close.
The first 5 Wave sequence of the day was a
familiar wave, with an inverted corrective wave 2. This completed as the market
hit 1586.39. From there, the market turned a little choppy, eventually wending
its way to 1585.33. This was itself a corrective wave 2 from the 1586.39 high.
Looking at this entire wave sequence from 1538.57,
the market as now completed four waves, and Waves 1, and 2 of Wave 5. Wave 1
was the rise from 1538.57 to 1564.91 on 3/25/2013. Wave 2 was then the
semi-inverted corrective wave that stretched from 1564.91 to 1540.29. Wave 3
went from that low, to yesterday’s 1573.89 high. Wave 4 then completed at
yesterday afternoon’s low of 1567.97.
Today the market completed Wave 1, and Wave 2 of 5
at 1586.39, and 1585.33 respectively. Waves 3, 4, and 5 of 5 should lead to the
end of this sequence. With more waves completed, it is now likely that this
wave will carry slightly higher than the 1619 I had previously mentioned. The
SPX should now top over 1621.
A likely path for these final waves would be
something like 1599-1597-1621. After this wave completes, the market should
finally be ready for a correction.
Thank you.
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