Sunday, July 7, 2013

Weekend Outlook 07/07/2013

On Friday, the market continued the rally off Wednesday’s 1604.75 low. An opening gap up led to a 1627.01 high, and after a slight pullback, the SPX edged slightly higher to 1627.06. After that, the index suffered a pullback, dropping to 1614.71. After that the trading was mostly higher, if not a little choppy. A rally to 1621.51 was followed by a pullback to 1617.45. This, in turn, was followed by another rally to 1626.53, a pullback to 1623.46, another rally to 1630.44, another pullback to 1623.98, and finally a rally to 1632.07.


I had been targeting 1631, and the SPX moved right into that level. I had been targeting this level as the termination point of a 5 Wave sequence from 1560.33, but it appears more likely that the actual end point for that sequence was 1626.61. After the pullback to 1604-1605, the SPX completed a sequence higher to 1627.06, and may have completed another sequence Friday at 1630.44.

The market action from the 1560 low continues to look bullish, and is most likely the beginning of a new uptrend. The next resistance levels would appear to be around 1650, and then 1675.

Thank you.


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