Tuesday, July 9, 2013

Tuesday's Market 07/09/2013

The SPX gapped up at the open today, quickly finding itself at the 1650 resistance level I mentioned yesterday. The index made it to 1649.90 before pulling back to 1643.93. After that low, the SPX spent the rest of the day moving progressively higher, interrupted by only very small pullbacks along the way. By the afternoon, the SPX had reached 1653.49, and by the end of the day 1654.18.


In yesterday’s post I indicated that two waves had now completed from 1604.57 low and possibly four waves of lesser degree by the end of yesterday. The extended move today from yesterday’s 1638.06 low completed a 5 wave sequence at 1653.49, and then a higher degree sequence at 1654.18. This most likely completes the third wave from the 1604.57 low.

The slight pull back at the end of the day may have completed the fourth wave, which would give a 5th Wave target of 1666. At that point we could see a pullback similar to the 22 point move we saw from 1626.61 to 1604.57. As I mentioned yesterday, I still expect this market to move higher from that point.

Thank you.


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