I thought that yesterday afternoon’s 1663.52 low
completed an inverted corrective wave from 1661.49. As it turns out that was
Wave 1 of E from that high.
The SPX did move higher at the open, but managed
only to get to 1672 before turning lower. The index moved below 1663.52,
falling to 1662.67 before reversing course once again. The SPX moved steadily
higher until it hit another, you guessed it, all-time high at 1674.07. After a
minor pullback the SPX moved higher again, surpassing 1674.07, and rising to
1674.93. From there we saw another pullback, this time taking the SPX to
1668.70 near the close.
As I mentioned above, yesterday’s 1663.52 low
completed only Wave 1 of E.
This morning’s rise was Wave 2 and the decline from that high resulted in Waves 3, 4, and 5 completing. This did
complete the inverted corrective wave, and from there the SPX moved higher. The
SPX completed a sequence at 1674.93, and then what appears to be a corrective sequence
to 1668.70.
The current market set-up is quite interesting. My
expectation has been that the SPX should complete a 5 wave sequence from
1581.28, which would be followed by a small correction, and then another 5 wave
sequence higher to complete the sequence from 1074.77. The market has continued
to complete sequences, and then go on to form larger degree sequences while
moving higher. The first of these sequences completed at 1635.01, the second at
1661.49, and now the SPX has started forming another sequence. Waves 1 and 2 of
the current sequence have completed, with Wave 2 being the recently completed
inverted corrective wave. It is possible that today’s rise to 1674.93, and
decline to 1668.70 were Waves 3, and 4. If this is correct, Wave 5 of this
sequence should complete between 1675 and 1677. This would appear as a diagonal
triangle. I would then look for a move below 1668 to confirm this scenario. This would then be the start of the corrective
sequence lower.
If the SPX moves above 1677, it would be most
likely that today’s rise to 1674.93 was simply wave 1 of 3. This would indicate
a further move higher before a correction.
Thank you.
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