The SPX opened higher this morning, jumping above
1710, and then continuing higher until it reached 1721.75. After that the index
worked lower into the afternoon, falling to 1715.19 before rising near the high
of the day towards the close.
The higher opening this morning supports the
alternate count I discussed yesterday that an inverted corrective wave
completed yesterday at 1695.93. The late afternoon rise to 1704.46 then
completed a wave 1, with the pullback becoming wave A of an inverted corrective
wave. Wave B of this wave completed at today’s high of 1721.75, very close to
the 1723 resistance level I have been mentioning. The meandering pullback into the
afternoon completed waves C, D, and E, and thus wave 2 from yesterday’s 1695.93
low. This means the SPX should now complete waves 3, 4, and 5 to the upside.
Looking at the count from the 1646.47 low, it does
look like an inverted corrective wave completed from 1662.47 to 1695.93. I have
added this count to the chart, which is denoted by the use of parentheses. This
count continues to point to higher prices, and my target remains 1745. 1723
would be the last resistance level suggested by the previous wave structure,
and if that level is cleared the SPX should be headed to new highs. Support is
at 1703, and then 1685.
While it is difficult to pinpoint the exact high
of this move at the moment, I have been looking for it to be above the previous
high of 1729.86, with an optimal target of 1745.
No comments:
Post a Comment