Wednesday's Market 09/18/2013

The SPX opened slightly higher, and continued slightly higher into mid-morning. At that point it turned slightly lower, dropping below yesterday’s late afternoon low, and nullifying my very short term count. The index continued moving lower until mid-day, when it started moving higher in anticipation of the FOMC statement. After the release of the statement, the SPX moved sharply higher, making a new all-time high, and reaching 1729. After that, the index moved lower into the close.

As I mentioned, the move lower this morning made my very short term count from 1681.96 incorrect. I still see this as a wave 5 from the 1627 low, which has now moved above the minimum target level. It would appear that this wave has not yet completed, and I continue to look at the 1745 optimal target level as a possibility. I would expect the current wave to end before reaching 1776. Should the market move above that level, the possibility exists that the entire wave from 1074.77 is completing.