Wednesday, July 17, 2013

Wednesday's Market 07/17/2013

It certainly has been an interesting couple of days for the market. As of the close on Friday, I was still looking for a pull back of around 9-10 points, followed by another move higher. It would now appear that pull back actually occurred on Friday, and was only the 5 point move from 1677.41 to 1672.33. That was followed by a move higher that culminated at the open on Monday at 1681.99. After another pull back to 1677.89, the SPX made a final move to 1684.51.


This last move to 1684.51 most likely completed a 5 Wave sequence from 1604.57. From that high on Monday, the SPX dropped to 1671.84 on Tuesday. My current count would indicate that the SPX completed a 5 Wave sequence from the 1560.33 low at 1626.61. The most likely count from that point is an unfolding inverted corrective Wave 2 from that high. So far, the index has completed 3 of the 5 waves at 1604.57-1684.51-1671.84.

From Tuesday’s 1671.84 low, the index appears to have formed 4 waves of a sequence thus far. After an initial move higher to 1677.14, the SPX pulled back to 1672.99. The index then opened higher this morning, reaching 1683.07 after the first few minute. After pulling back to 1678.58, the SPX continued higher, finally reaching 1684.75. This completed the third wave from 1671.84. The action turned choppy after that, with the SPX pulling back to 1678.64, rallying to 1683.46, and finally pulling back to 1678.12.


If my count is correct, the SPX should now continue higher. This wave could unfold in several ways, but if it unfolds in a simple 5 Wave sequence, my target at this point would be 1718. This move from 1560.33 has been difficult to follow, so it is prudent to use caution going forward. If the SPX falls below 1678.12, my count would be in danger, and a move below 1671.84 would mean it was wrong.

Thank you.

2 comments:

  1. Where do you see the high for this bull run before the next big correction?

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    Replies
    1. I am looking for a minimum of 1776 on the SPX.

      Thanks,
      Steve

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