I stated in Friday’s post that it appeared the SPX
had completed a semi-inverted corrective wave at 1606.24, and that the index
was poised to make a swift run up to 1631. The SPX gapped up this morning, and
reached 1619.32 before pulling back. That pullback was brief, with the SPX only
dropping to 1617.19 before moving higher. The index rose to 1626.18, and then
pulled back to 1622.37. From there the SPX chopped its way to a new intra-day
high at 1626.61. After that the action was predominately to the downside. First
the SPX dropped to 1622.86, and then traded sideways before falling further to
1617.18. Then, after bouncing above 1621, the index dropped to 1612.85 before
rising slightly into the close.
I also mentioned on Friday that appeared that the
completion of the wave from 1601.06 would be only wave 3 from the 1560.33 low,
and that this wave may complete as 1621-1619-1631. Today’s initial move to 1619
was slightly below the 1621 projection, but appears to be Wave 3 1601.06. Wave
4 was the small pullback to 1617.19, and the move to 1626.61 completed the
sequence.
After that the index completed a 5 Wave sequence
to the downside that completed at 1615.27, followed by a higher degree sequence
that completed at 1612.85. This is close to the first support of 1611. This
could be the completion of Wave 4 from 1560, with the Wave 5 target still at
that 1631 level.
There is some indication that Tuesday’s first move
may be to the downside, and if it is, the next support is at 1605. I would
fully expect this pullback to hold above the 1601.06 low. Where ever this
current Wave 4 ends, it appears the target is still near 1631.
Thank you.
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