It was another gap up open…….wait……there WAS NOT a
gap up open. That is news in itself for this market. Although the SPX did not
gap up, it did open to the upside once again. After hitting 1653.67, the index
headed down, dropping to 1648.17. From there the SPX moved slightly higher,
chopping its way to 1651.48. After a slight dip, the SPX headed sharply higher,
reaching 1657.92. Almost as quickly the SPX dropped, taking out the previous
daily low, and falling to 1647.66. A move to 1653.50 followed, and then a pull
back to 1650.38 before rising into the close.
After yesterday, I was looking for one more move
higher, to 1666, before a pull back. It now looks like I was slightly off. From
the 1604.57 low, I had Wave 1 to 1627.06, followed by an inverted corrective
wave that completed at 1637.01. I then had the move to 1654.18 as Wave 3. It
now appears that only the first 3 waves of that inverted corrective wave
completed. The third wave of that sequence ended at 1614.71. The entire move
from that low to today’s 1657.92 high completed the fourth wave, with the subsequent
drop to 1647.66 finally completing the sequence.
From here I am looking for the SPX to move higher,
with the first move having the same target I gave yesterday, which was 1666.
After that there should be a small pullback, and then one final move higher
before a slightly larger pull back, most likely somewhere around 20 points.
The first wave of this sequence was just over 22
points, 1604.57 to 1627.06. The third wave, 1647.66 to 1666, would be around 20
points. Therefore, after the SPX hits 1666, and pulls back, I would expect Wave
5 to be of that same magnitude.
Thank you.
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