Saturday, June 1, 2013

Friday's Market 05/31/2013

I will apologize in advance, but I am a little pressed for time tonight, so I will have to be brief. I will go into more detail over the weekend, but considering that today was the day many have been waiting for, including me, I wanted to at least touch on today’s developments.

Today was the day that the SPX finally broke through the 1635.53 low, and ostensibly clear up the muddled counts of the last week and a half. However, the break of that low seems to have created more questions than answers.

I am not counting out the possibility of this now turning into a deeper correction, one that will take the SPX into the mid-1500s. However, this market has been full of surprises, and there is no reason to believe that the market is not setting us up for another one. With this in mind, I will offer a possibility of this correction nearing an end.

I present this count on the 15 Minute chart, and it would be Wave 1 at 1672.96 from 1687.18, followed by an inverted corrective wave that ended at 1674.21. Wave 3 would have ended at 1640.05 and Wave 4 at 1661.91. This would project Wave 5 at 1619.


While the trend of the market is now to the downside, it could get interesting should we see a capitulation move on Monday. A sharp sell off at the open, followed by a strong, may mark the end of this move.

Again, I am far from calling this move over, but it is something to watch for on Monday. I will follow up with a more detailed analysis over the weekend.

Thank you. 

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