Thursday, May 9, 2013

Thursday's Market 05/09/2013


Another day, another all-time high. Again. But this one may be quite different from the others.


The market opened flat today, and then moved lower, with the SPX dropping to 1626.91.That dip was once again met with buying, and the SPX rallied to another all-time high. At that point the market experienced the deepest pullback since it started on this run. The SPX sold off into the support zone I mentioned yesterday, 1623, and then rallied to 1629 before falling back to 1623.09.

As of my count from yesterday, I had a 5 Wave sequence completed from 1581.28 at the high of 1632.78. We had a 5 wave sell-off to 1626.91, a 5 wave advance to 1635.01, and then a drop below 1626.91. That would mean that there were 3 sequences from the 1581.28 low. The best count would therefore be that we saw the completion of Waves 3, 4, and 5 from 1074.77 today.

While I had been expecting a minor correction, followed by new highs, before a major correction, the count from today suggests the major correction may be underway. If the SPX should rise above 1635.01, this count would be proved wrong, but until then I will operate under those assumptions.

Thank you.







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