The decline from Wednesday’s 1775.22 all time high
has been extremely interesting, and which may lead to some longer term
implications.
The decline started with a fairly straight forward
sequence which went 1770.67-1773.30-1764.31-1770.48-1757.24. From that point,
the SPX made a choppy advance to 1768.53. The sequence 1766.33-1755.72-1765.54-1763.20-1768.53
completed a complex semi-inverted corrective wave, and wave 2 from the 1775.22
high. This was followed by another decline to 1752.70 which completed today,
and wave 3. This afternoon’s rebound to 1763.88 would seem to complete wave 4.
If this count proves to be correct, it would point
to another move lower, which should complete at 1749-1750. BY my count, this
would complete the fourth wave from 1646.47, and point to another move higher,
with a target of 1782. This would be above the critical 1776 level I have been
discussing for some time, and could possibly complete the entire sequence from
the 1074.77 low.
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