Monday's Market 06/17/2013

It was another gap opening for the SPX, this time to the upside. This carried the index to 1642 shortly after the open, with the SPX then continuing higher in choppy trading until it hit 1646.50. An extended pullback ensued, carrying the SPX back to that 1642 level. After hitting 1642, the index headed higher once again, with the SPX making it back to 1645.32. The index started to pull back again, with that pullback quickly becoming a sell-off. The SPX dropped all the way back to 1630.34, almost erasing the gains for the day, before heading higher. A rally into the close followed bringing the SPX 1641 before it faded into the close.

The market continued it’s up and down antics, seemingly unable to embark on a sustained trend in either direction for the moment. It would appear that the SPX completed a 5 Wave sequence from Friday’s 1623.96 low today at 1645.32 and followed that with a sequence to the downside that completed at 1630.34.

Although the day to day movements of the market have been treacherous to forecast, I still believe the markets have at least one more move to the downside before it can move higher.

I will keep my downside target at 1561 for the moment, however, there are several ways this can play out, and so that target may change. I would remain short term bearish unless the SPX can rise above 1674.21.

I will be away for the next several days, with limited access to the markets. I will try to update when I can.

Thank you for your continued support.