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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