The market continued the rally from Wednesday’s
1640 low, opening higher and continuing higher throughout most of the day.
After some choppiness at the open, the SPX rose steadily until it reached
1659.27. Yesterday I gave 1659 as a first target for this move. After pulling
back to 1654, the SPX moved above 1660, and then pulled back to 1656. One final
move higher to 1661.91 followed, but was met with some selling pressure, as the
index quickly fell to 1654. The 1661.91 high was slightly below my 1665 target.
My count has the 1657.29 as the completion of a 5
wave sequence from yesterday’s 1647.69 low. This is what I thought would be
Wave 4 from 1640.05. This was followed by a sequence down to 1654.27, which
should have been Wave 4, and a sequence higher to 1661.91. This should have
completed Wave 5, and a sequence from the 1640.05 low. However, when I put this
series together, 1640.05-1648.38-1647.63-1657.29-1654.27-1661.91, it does not
meet the threshold for a completion of that sequence. That would indicate that
this move higher has further to go. If the SPX gets above 1662, the count I am
looking at would indicate a move near 1700 is underway. This would project to
the same area as a possible 5 Wave sequence from 1635.53.
Until the SPX moves above 1662, it is still
possible that the market is still in a correction from the 1687 high. Any move
below 1635 would mean a further decline is likely.
Thank you.
No comments:
Post a Comment