The SPX opened slightly higher this morning,
hitting 1692.99 before quickly changing direction. After that initial move
higher the index fell to a new short term low at 1682.62. The bulls finally
gained some momentum, as the SPX changed course again, and rose sharply into
mid-afternoon. It reached a high of 1696.81 before turning choppy, and drifted
lower into the close.
Although the count from 1709 high has been difficult
to say the least, it would still appear that the SPX has completed a complex
corrective wave at 1683. This still supports a move to new highs, with my
target remaining at a minimum of 1776.
The short term count from today’s low appears to indicate
a move higher, and if so, would project to above 1705. It looks like this may
be the markets best chance of breaking out to new highs. If it fails to do so,
the bears may get another chance to take it down further.
I am still looking for a move above 1709 to
confirm a resumption of the uptrend. Below the 1683 level, support is at 1676,
and then 1668.
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