Hard to believe. Another all-time high for the
SPX. At times it seems like this will never end, but we all know it will.
Sometime. If today was not the start of a small pullback, it should be coming
soon.
After another gap open, the SPX hit 1658.31 before
pulling back. The SPX then moved higher to 1660.74 before another minute
pullback. From there the market moved steadily higher, hitting 1672.84. That
was followed by a somewhat larger pullback to 1663.52. This 9 point pullback
was similar in magnitude to the 11, and 12 point pullbacks we saw last
Wednesday and Thursday.
The rise from Friday’s 1648.60 low to 1672.84
completed in a 5 wave sequence. The drop to 1663.52 would then seem to complete
an inverted corrective wave from Wednesday’s 1661.49 high. We should now see
one more move higher to complete the sequence from 1581.28.
To review, 1581.28 was the termination point for
Wave 2 from 1074.77. Once the
SPX completes a 5 wave sequence it will complete Wave 3. At that that point I
would expect a correction, followed by another move higher to complete Wave 5. That is the point at
which I would expect a more substantial correction.
So far, from 1581.28, the SPX completed 5 waves to
1635.01, and then a higher degree sequence at 1661.49. The three aforementioned
pullbacks formed the inverted corrective Wave 2, and should be followed by
waves 3, 4, and 5 higher. Because of the structure, it would be possible to
complete this sequence without making a new high.
If the SPX moves to 1668, and then falls below
1663.52, I would expect a pullback has begun. Should the SPX move above that
level, 1677-1681 could be the next stop.
Thank you.
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