The SPX opened slightly higher today, but quickly
gave back those gains to move lower. Yesterday I said that a 5 wave sequence
from the 1730 may have ended, but could move slightly lower, with the 1651
support level being critical. The index did test that support level, dropping
below it to 1646.47, but then recovered. It appears that for now that level has
held. From that low the SPX formed a 5 wave sequence higher to 1642.47. The
first three waves completed as 1651.06-1649.47-1654.69. This was followed by an
inverted corrective wave 4 that terminated at 1657.68. The fifth wave of this
sequence then subdivided, and completed at 1642.47. It looks like three waves
down completed at 1654.81. This would suggest an inverted corrective wave is
forming, which would allow the SPX to move higher.
With the 1651 support level holding, it seems
likely that the sequence from 1730 has completed, and I would expect a move
higher. I am still looking at the 1700 area as an initial target.
Happy Birthday John.
Thanks Steve. You nailed this bullish move. Best Regards, Rancho
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