It was another gap up open for the SPX, as the
index moved above 1700 for the first time since early August. After moving up
to 1703.74 after the open, the SPX pulled back to 1698.77, and then made one
more push higher to 1704.95. After that the index moved steadily lower,
dropping to 1695.15 before moving a bit higher into the close.
It still appears that the SPX is in a wave 5 from
the 1627 low, with a target of 1745. I see wave 4 having completed last
Thursday at 1681.96. From that point, it looks like the index completed a
sequence this morning at 1703.74, and then formed a complex corrective wave
into the afternoon low of 1695.15. This looks to be waves 1, and 2 of this 5th
wave.
Support remains at 1685, 1669, and then 1651.
Thank you Steve.
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