The SPX continued to rally off the 1560.33 low,
gapping up this morning, and rising above 1588 in early trading. A steep
sell-off from that point nearly closed the opening gap, but the buyers soon
returned, and the index moved higher again, this time reaching 1589. Another
dip took the SPX to 1583 before rallying again to 1593.79. The SPX then started
to fall again into the close.
From Monday’s 1560 low, the SPX rallied to
1586.45, completing a 5 Wave sequence. That then became Wave 1 of a larger
degree sequence which ended today at 1589.13. After moving lower in a 5 Wave
sequence to 1583.06, the index then rose to 1593.79, in another sequence. It
appears that the SPX has now completed 3 5 Wave sequences from the 1560 low,
1589.13-1583.06-1593.79. Given my current interpretation of 1560.33 as the low
of the correction from 1687, this would mean that the SPX should continue
higher. I am still looking for a move above 1598 to confirm this scenario.
The alternative is that the 3 sequences to the
upside are part of a complex corrective sequence from the 1560 low. A move
below 1560 would indicate that this interpretation is the correct one.
Thank you.
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