The SPX started the day with another gap up open,
rising above 1640 to start the day. After a brief three point pullback, the
move higher continued in stair step fashion, with the SPX hitting 1642.28, and
the 1644.68 after falling back to 1640.38. That turned out to be the high of
the day, as the index slipped into a protracted pullback that took it down to
1637.01. The trading then turned choppy, with the SPX spending the remainder of
the day trading in a trading range from that low to 1642.
This morning’s initial move up to 1644.68 appears
to complete a single sequence from yesterday’s 1614.71 low. The first wave of
this sequence ended at 1630.44, and was the most complex of the waves. The
first 3 waves were straight forward, 1614.71-1619.20-1616.06-1621.51, but were
then followed by an inverted corrective wave 4 which terminated at 1623.46.
Wave 5 of this initial sequence then ended at 1630.44. From that point, the SPX
pulled back to 1623.98. This pull back occurred in three waves, which became the
first three waves of an inverted corrective wave 2. This wave completed today
on the initial pullback to 1637.61. The entire sequence from 1614.71 then
completed 1642.28-1640.38-1644.68.
From that 1644.68 high, the SPX pulled back in a 5
Wave sequence to 1637.01. Off that low, it looks like the index has complete 4
waves thus far.
Looking at the larger picture from the 1560.33
low, I believe the SPX completed a sequence higher at 1626.61, followed by a
corrective sequence to 1604.57. A sequence of lesser degree then completed at
1627.06, and was followed by an inverted corrective wave that completed today
at 1637.01. If this count proves correct, it would imply much higher prices, as
the SPX would need to first complete the sequence from 1604.57, and then the
sequence from 1560.33.
I would look for the market to move higher from
here, with resistance at with my next target at 1658. Resistance is at 1650,
and then 1675.
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